Feeds

'Employees first' ruling nixed after appeal

Legal wrangling

High performance access to file storage

The Court of Appeal has overturned a ruling that gave employees priority over administration fees when companies collapse.

The original ruling, handed down by Mr. Justice Peter Smith, stated that when a company goes into administration, cash owed to employees must take priority over the administrators' fees and administration costs.

It prompted concern that the administrations of companies involving large redunancies could have been jeopardised.

After 14 days, the administrators of a company's collapse become responsible for the employment contracts. Justice Smith's ruling would have ringfenced cash for the protective awards these employees would be entitled to, at the expense of the administrator's fees, and legal costs.

According to TheLawyer.com, if Justice Smith's ruling had stood, in similar cases, the administrator could well decide to make all staff redundant, to avoid becoming liable for paying protective awards at a later stage.

The Court of Appeal came to the rescue of administrators and overturned Smith's ruling.

Under UK law when more than 100 employees are to be laid off, the employer must consult with the staff for a period of 90 days before issuing the P45s. If it fails to do so, an employment tribunal can award the employee a so-called protective award, covering salary or wages for a period of up to 90 days. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.