What is a characteristic of contracts of employment during administration?

In the context of administration, contracts of employment can be terminated by the administrator, which is a fundamental characteristic of employment contracts during this period. When a company enters administration, the administrator is appointed to manage the affairs of the company, and they have the authority to make decisions regarding the operational management, including employment contracts.

This means that the administrator can assess the workforce and determine if certain positions are necessary for the ongoing operation of the business during the administration process. If the administrator decides that certain roles are no longer required or if the financial situation necessitates workforce reductions, they can terminate contracts of employment. This ability to terminate employment is a critical tool for the administrator to help stabilize the business and protect the interests of creditors.

Other options reference aspects that do not fully capture the rights and limitations placed on administrators regarding employment contracts. For example, preservation without changes or court approval for termination may not reflect the administrator's discretion in managing the company's affairs effectively. Thus, the correct understanding hinges on the administrator's role and power in terminating employment contracts within the framework of administration.