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Administration: Protective awards not accorded 'super-priority' in administrations

This report relates to 1 case(s)

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    Krasner (administrator of Huddersfield Fine Worsteds Ltd and Globe Worsted Co Ltd) v McMath and other appeals [2005] IRLR 995 CA (0 other reports)

In Krasner v McMath [2005] EWCA (Civ) 1072, the Court of Appeal holds that, in a situation where the employer is in administration, liabilities to employees for protective awards and payments in lieu of notice, except for "garden leave" payments, are not accorded super-priority status where the administrator has adopted the contracts of employment. Accordingly, these liabilities do not take priority over payment of the administrator's fees and expenses.