NEC ECC: Should contractor Insolvency result to a breach of contract to the Employer?

The clause says “if the Contractor becomes insolvent then such event shall create a default and breach by the Contractor of this contract and the Employer may at any time by notice to the Contractor terminate the Contractors employment”

This is a Z-clause i.e. written specially for the contract. On the face of it, the answer seems to be ‘Yes’ the Employe can terminate.

However, I would be wary of reading this clause in isolation from the standard section 9 clauses for Termination and any other relevant option Z clauses as the Employer might end up paying quite a lot for doing this.

Just to add to Jon’s answer, insolvency itself is not a breach of contract, although does lead to a breach (ie: non-performance). Consequently, contracts are frequently amended to make insolvency a breach to allow an Employer (Client) the right to terminate accordingly.