This is a preview. To continue reading please log in or Register to read this article

Insolvency: Administrators and receivers liable on adopted contracts

This report relates to 2 case(s)

  • expand disabled

    Powdrill and Atkinson (as joint administrators of Paramount Airways Ltd) v Watson and another [1995] IRLR 269 HL (0 other reports)

  • expand disabled

    Talbot and another v Grundy and another [1995] IRLR 269 HL (0 other reports)

Where the conduct of an administrator or receiver of a company amounts to an election to treat a continued contract of employment as giving rise to a separate liability in the administration or receivership, that contract is "adopted" within the meaning of the Insolvency Act 1986, holds the House of Lords in Powdrill and Atkinson v Watson and another; Talbot and another v Cadge and another; and Talbot and another v Grundy and another. Adoption automatically occurs if an administrator or receiver continues an employee in employment for more than 14 days after appointment.