Your World of Legal Intelligence
 United Kingdom | +44 (0) 20 7284 8080

Insolvency Act 1994

Consolidated Text As Enacted Cited authorities 2 Cited in Amendments 6 Related
Vincent
JurisdictionUK Non-devolved
Citation1994 c. 7
Year1994
(1) Section 19 of the (2) In subsection (3) (which provides for the next two subsections to apply where a person ceases to be administrator) for “next two” there shall be substituted “ following ”.(3) In subsection (5) (which provides for certain debts and liabilities incurred during administration, including those incurred under contracts of employment adopted by the administrator, to be charged on the company’s property in priority to his remuneration and expenses) the words “or contracts of employment adopted” shall be omitted.(4) After the first paragraph of that subsection there shall be inserted—
  • “(6) Any sums payable in respect of liabilities incurred, while he was administrator, under contracts of employment adopted by him or a predecessor of his in the carrying out of his or the predecessor’s functions shall, to the extent that the liabilities are qualifying liabilities, be charged on and paid out of any such property as is mentioned in subsection (4) and enjoy the same priority as any sums to which subsection (5) applies.
Any sums payable in respect of liabilities incurred, while he was administrator, under contracts of employment adopted by him or a predecessor of his in the carrying out of his or the predecessor’s functions shall, to the extent that the liabilities are qualifying liabilities, be charged on and paid out of any such property as is mentioned in subsection (4) and enjoy the same priority as any sums to which subsection (5) applies.(5) The second paragraph of that subsection (which provides that an administrator is not to be taken to have adopted a contract of employment by reason of any acts or omissions within 14 days after his appointment) shall become the second paragraph of the subsection inserted by subsection (4) above.(6) At the end of the section there shall be inserted—
  • “(7) For the purposes of subsection (6) , a liability under a contract of employment is a qualifying liability if—
  • (a) it is a liability to pay a sum by way of wages or salary or contribution to an occupational pension scheme, and
  • (b) it is in respect of services rendered wholly or partly after the adoption of the contract.
it is a liability to pay a sum by way of wages or salary or contribution to an occupational pension scheme, andit is in respect of services rendered wholly or partly after the adoption of the contract.There shall be disregarded for the purposes of subsection (6) so much of any qualifying liability as represents payment in respect of services rendered before the adoption of the contract.wages or salary payable in respect of a period of holiday or absence from work through sickness or other good cause are deemed to be wages or (as the case may be) salary in respect of services rendered in that period, anda sum payable in lieu of holiday is deemed to be wages or (as the case may be) salary in respect of services rendered in the period by reference to which the holiday entitlement arose.In subsection (9) (a) , the reference to wages or salary payable in respect of a period of holiday includes any sums which, if they had been paid, would have been treated for the purposes of the enactments relating to social security as earnings in respect of that period.(7) This section shall have effect in relation to contracts of employment adopted on or after 15th March 1994.(1) Section 44 of the (2) In subsection (1) (b) (liability for contracts of employment adopted in carrying out his functions) after “provides) and” there shall be inserted “ , to the extent of any qualifying liability, ”.(3) After subsection (2) there shall be inserted—
  • “(2A) For the purposes of subsection (1) (b) , a liability under a contract of employment is a qualifying liability if—
  • (a) it is a liability to pay a sum by way of wages or salary or contribution to an occupational pension scheme,
  • (b) it is incurred while the administrative receiver is in office, and
  • (c) it is in respect of services rendered wholly or partly after the adoption of the contract.
it is a liability to pay a sum by way of wages or salary or contribution to an occupational pension scheme,it is incurred while the administrative receiver is in office, andit is in respect of services rendered wholly or partly after the adoption of the contract.Where a sum payable in respect of a liability which is a qualifying liability for the purposes of subsection (1) (b) is payable in respect of services rendered partly before and partly after the adoption of the contract, liability under subsection (1) (b) shall only extend to so much of the sum as is payable in respect of services rendered after the adoption of the contract.wages or salary payable in respect of a period of holiday or absence from work through sickness or other good cause are deemed to be wages or (as the case may be) salary in respect of services rendered in that period, anda sum payable in lieu of holiday is deemed to be wages or (as the case may be) salary in respect of services rendered in the period by reference to which the holiday entitlement arose.In subsection (2C) (a) , the reference to wages or salary payable in respect of a period of holiday includes any sums which, if they had been paid, would have been treated for the purposes of the enactments relating to social security as earnings in respect of that period.(4) This section shall have effect in relation to contracts of employment adopted on or after 15th March 1994.(1) Section 57 of the (2) After subsection (1) there shall be inserted—
  • “(1A) Without prejudice to subsection (1) , a receiver is deemed to be the agent of the company in relation to any contract of employment adopted by him in the carrying out of his functions.
Without prejudice to subsection (1) , a receiver is deemed to be the agent of the company in relation to any contract of employment adopted by him in the carrying out of his functions.(3) In subsection (2) (liability for

To continue reading

Request your trial
Navigation index

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT