Debenhams Retail Ltd, Re

Debenhams Retail Ltd, Re

Administrators who pay furloughed employees under the Scheme and retain their contracts have adopted those contracts for purposes of paragraph 99, regardless of whether employees provide services or payments are reimbursed by government.

Parties
Appellant: Geoff Rowley; Appellant: Alastair Massey; Company: Debenhams Retail Limited (in administration)
Jurisdiction
England and Wales
Judgment Date
06 May 2020
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Administration, Adoption of Employment Contracts, Coronavirus Job Retention Scheme, Super Priority Expenses
Insolvency Employment Administration Adoption of Employment Contracts Coronavirus Job Retention Scheme Super Priority Expenses

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Parties

Geoff Rowley

Appellant

Alastair Massey

Appellant

Debenhams Retail Limited (in administration)

Company

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether administrators adopt contracts of furloughed employees by paying only amounts claimable under the Coronavirus Job Retention Scheme
  2. 2 Legal consequences of adoption under paragraph 99 of schedule B1 to the Insolvency Act 1986

Ratio Decidendi

Administrators who pay furloughed employees under the Scheme and retain their contracts have adopted those contracts for purposes of paragraph 99, regardless of whether employees provide services or payments are reimbursed by government.

Court Disposition

Appeal dismissed

Orders

  • Administrators are at liberty to act on the basis that they have adopted the contracts of furloughed employees for purposes of paragraph 99 of schedule B1 to the Insolvency Act 1986