UKPGA-1994-7 — Insolvency Act 1994

preamble

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

s. 1 — Administrators: priority of liabilities under adopted contracts of employment.

s. 1(1)

Section 19 of the Insolvency Act 1986 (vacation of office) shall be amended as provided by subsections (2) to (6) below.

s. 1(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 ”.

s. 1(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.

s. 1(4)

After the first paragraph of that subsection there shall be inserted—

s. 1(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.

s. 1(6)

At the end of the section there shall be inserted—

s. 1(7)

This section shall have effect in relation to contracts of employment adopted on or after 15th March 1994.

s. 2 — Administrative receivers: extent of personal liability on adopted contracts of employment.

s. 2(1)

Section 44 of the Insolvency Act 1986 (personal liability of administrative receiver for certain contracts) shall be amended as provided by subsections (2) and (3) below.

s. 2(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, ”.

s. 2(3)

After subsection (2) there shall be inserted—

s. 2(4)

This section shall have effect in relation to contracts of employment adopted on or after 15th March 1994.

s. 3 — Receivers (Scotland): extent of personal liability on, and agency in relation to, adopted contracts of employment.

s. 3(1)

Section 57 of the Insolvency Act 1986 (agency and personal liability of receiver for certain contracts) shall be amended as provided by subsections (2) to (4) below.

s. 3(2)

After subsection (1) there shall be inserted—

s. 3(3)

In subsection (2) (liability for certain contracts entered into or adopted in carrying out receiver’s functions), after “provides, and” there shall be inserted “ , to the extent of any qualifying liability, ”.

s. 3(4)

After subsection (2) there shall be inserted—

s. 3(5)

This section shall have effect in relation to contracts of employment adopted on or after 15th March 1994.

s. 4 — Corresponding provision for Northern Ireland.

Schedule 1 to this Act (which makes provision for Northern Ireland corresponding to that made by sections 1 and 2 above) shall have effect.

s. 5 — Short title, repeals and extent.

s. 5(1)

This Act may be cited as the Insolvency Act 1994.

s. 5(2)

The enactments mentioned in Schedule 2 to this Act are hereby repealed to the extent specified in the third column of that Schedule.

s. 5(3)

The extent of any amendment or repeal of an enactment made by this Act is the same as that of the enactment amended or repealed.

Sch 1

CORRESPONDING PROVISION FOR NORTHERN IRELAND

Sch 1 para 1

Sch 1 para 1(1)

Article 31 of the Insolvency (Northern Ireland) Order 1989 (vacation of office) shall be amended as follows.

Sch 1 para 1(2)

In paragraph (3) (which provides for paragraphs (4) and (5) to apply where a person ceases to be administrator) for “paragraphs (4) and (5)” there shall be substituted “ the following paragraphs ”.

Sch 1 para 1(3)

In paragraph (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” and the words from “and for the purpose” to the end shall be omitted.

Sch 1 para 1(4)

At the end there shall be inserted—

Sch 1 para 2

Sch 1 para 2(1)

Article 54 of the Insolvency (Northern Ireland) Order 1989 (personal liability of administrative receiver for certain contracts) shall be amended as follows.

Sch 1 para 2(2)

In paragraph (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, ”.

Sch 1 para 2(3)

After paragraph (2) there shall be inserted—

Sch 1 para 3

The preceding provisions shall have effect in relation to contracts of employment adopted on or after 15th March 1994.

Sch 2

Repeals