Krasner V McMath on:
[Wikipedia]
[Google]
[Amazon]
''Krasner v McMath''
EWCA_Civ_1072(also,_''Re_Huddersfield_Fine_Worsteds_Ltd'')_is_a_
EWCA_Civ_1072(also,_''Re_Huddersfield_Fine_Worsteds_Ltd'')_is_a_United_Kingdom_labour_law">UK_labour
_
The_Labour_Party_is_a_List_of_political_parties_in_the_United_Kingdom,_political_party_in_the_United_Kingdom_that_has_been_described_as_an_alliance_of_Social_democracy,_social_democrats,_Democratic_socialism,_democratic_socialists_and_trade_u_...
_and_United_Kingdom_insolvency_law.html" "title="United_Kingdom_labour_law.html" "title="005
EWCA Civ 1072(also, ''Re Huddersfield Fine Worsteds Ltd'') is a United Kingdom labour law">UK labour
The Labour Party is a List of political parties in the United Kingdom, political party in the United Kingdom that has been described as an alliance of Social democracy, social democrats, Democratic socialism, democratic socialists and trade u ...
and United Kingdom insolvency law">insolvency law
In accounting, insolvency is the state of being unable to pay the debts, by a person or company ( debtor), at maturity; those in a state of insolvency are said to be ''insolvent''. There are two forms: cash-flow insolvency and balance-sheet i ...
case concerning the priority of payments to workers of an insolvent company in priority to other creditors.
Facts
Gerald Krasner was the administrator of an insolvent worsted company, in an appeal joined to another two companies. Barry McMath was one of the employees claiming that his right to compensation for the employer’s failure to consult the workforce about redundancies was payable in priority to the expenses of administration.
TULRCA 1992
The Trade Union and Labour Relations (Consolidation) Act 1992c 52 is a UK Act of Parliament which regulates United Kingdom labour law. The Act applies in full in England and Wales and in Scotland, and partially in Northern Ireland.
The law cont ...
s 188 gives the right to be consulted 90 days in advance where there are twenty or more dismissals, s 189 gives the right to a ‘protective award’ in lieu of consultation and s 190 specifies this should be one week’s pay per missed week. Mr McMath’s contract had been adopted (in priority to administration expenses) under
IA 1986
The Insolvency Act 1986c 45 is an Act of the Parliament of the United Kingdom that provides the legal platform for all matters relating to personal and corporate insolvency in the UK.
History
The Insolvency Act 1986 followed the publication and ...
Sch B1 para 99, and so was owed any ‘liability arising under a contract of employment’. Were protective awards in that category?
Peter Smith J in one case had held that they were payable in priority and Etherton J in the other had held they were not.
Judgment
Neuberger LJ held that protective payments under
TULRCA 1992
The Trade Union and Labour Relations (Consolidation) Act 1992c 52 is a UK Act of Parliament which regulates United Kingdom labour law. The Act applies in full in England and Wales and in Scotland, and partially in Northern Ireland.
The law cont ...
s 189 are not payable in priority to administration expenses. He noted that if a broad interpretation to ‘wages and salary’ is given under then it could hurt the purpose of rescuing insolvent companies, which was inspired by the
Cork Report
''Report of the Review Committee on Insolvency Law and Practice'' (1982) Cmnd 8558, also known as the "Cork Report" was an investigation and set of recommendations on modernisation and reform of UK insolvency law. It was chaired by Kenneth Cork and ...
and underpinned the
Insolvency Act 1986
The Insolvency Act 1986c 45 is an Act of the Parliament of the United Kingdom that provides the legal platform for all matters relating to personal and corporate insolvency in the UK.
History
The Insolvency Act 1986 followed the publication and ...
. This accorded with the natural meaning of IA 1986 para 99(5) and the list of payments in para 99(6), and accorded with the policy considerations surrounding rescue. In particular, many administrators would not decide that a rescue is possible if they know damages for failure to consult the workers who are retained and have their contracts adopted get super-priority for more than the work they do.
Clarke LJ and Jacob LJ concurred in the judgment.
See also
*
European Union Insolvency Protection Directive 2008/94/EC
*
Employment Rights Act 1996
The Employment Rights Act 1996 (c. 18) is a United Kingdom Act of Parliament passed by the Conservative government to codify existing law on individual rights in UK labour law.
History
Previous statutes, dating from the Contracts of Employment ...
ss 166-170, 182-190
*''
Regeling v Bestuur van de Bedrijfsvereniging voor de Metaalnijverheid''
999 999 or triple nine most often refers to:
* 999 (emergency telephone number), a telephone number for the emergency services in several countries
* 999 (number), an integer
* AD 999, a year
* 999 BC, a year
Books
* ''999'' (anthology) or ''999: ...
IRLR 379 (C-125/97)
*''
Robins v Secretary of State for Work and Pensions''
007ICR 779 (C-278/05)
*
Insolvency Act 1986
The Insolvency Act 1986c 45 is an Act of the Parliament of the United Kingdom that provides the legal platform for all matters relating to personal and corporate insolvency in the UK.
History
The Insolvency Act 1986 followed the publication and ...
'' Sch B1, paras 3 and 99
*''
Powdrill v Watson
''Powdrill v Watson'' 9952 AC 394 is a UK insolvency law case concerning the administration procedure when a company is unable to repay its debts.
Facts
Roger Powdrill was a joint administrator of Paramount Airways Ltd, a short haul aircraft ca ...
''
Notes
{{reflist, 2
References
*
United Kingdom labour case law
United Kingdom insolvency case law
Court of Appeal (England and Wales) cases
2005 in case law
2005 in British law