In Secretary of State for Trade and Industry v Walden and another  IRLR 168 EAT, the EAT held that the statutory definition contained in the Employment Rights Act 1996, section 183 is exhaustive in setting out the events that can constitute "insolvency" for the purposes of an employee's claim for certain payments from the Secretary of State.
In Everson and Barrass v Secretary of State for Trade and Industry and Bell Lines Ltd (in liquidation)  IRLR 202 ECJ, the European Court of Justice held that the competent institution under Article 3 of the Insolvency Protection Directive for paying an employee's claims on the employer's insolvency is that of the state where they are employed.
The statutory definition contained in s.183 of the Employment Rights Act 1996 is exhaustive of the events that can constitute "insolvency" for the purposes of an employee's claim for certain payments from the Secretary of State, holds the EAT in Secretary of State for Trade and Industry v (1) Walden (2) Kealfreight Ltd.
In Secretary of State for Employment v (1) Wilson and others (2) BCCI the EAT holds that, in making payments to employees of insolvent employers, the Secretary of State is liable to pay only the amount to which the employee is legally entitled.
Compensation for unfair dismissal was not a liability "on" employees' contracts of employment "adopted" by administrative receivers, within the meaning of the Insolvency Act 1986, holds the EAT in Albion Automotive Ltd and others v Shaw and others.
In Crawford v Secretary of State for Employment and another the EAT upholds an industrial tribunal's decision that an employee of an insolvent company was time-barred from claiming a redundancy payment from the Secretary of State.
The materials and information included in the XpertHR service are provided for reference purposes only. They are not intended either as a substitute for professional advice or judgment or to provide legal or other advice with respect to particular circumstances. Use of the service is subject to our terms and conditions.