Hughes v Secretary Of State For Employment & Ors [1995] UKEAT 204_94_1312 (13 December 1995)

Hughes v Secretary Of State For Employment & Ors [1995] UKEAT 204_94_1312 (13 December 1995)

Receivers are not personally liable for statutory redundancy payments under Section 37(1) of the Insolvency Act 1986 because such payments arise from statute, not from the contract of employment adopted by the receivers.

Source-derived case information.

Citation
[1995] UKEAT 204_94_1312
Parties
Appellant: Mr Hughes; 3rd Respondent: Alan David Kenningham and John Charles Heath (Receivers); Applicants: 8 Applicants (Messrs Murdoch, Fairburn, Robertson, Wildman, Oxtoby, Hirst, Watson, Patrick); 2nd Respondent: Secretary of State for Employment
Jurisdiction
United Kingdom
Judgment Date
13 December 1995
Procedural Posture
Employment Appeal / Appeal From Industrial Tribunal
Outcome
Appeal dismissed
Legal Topics
Redundancy Payments, Personal Liability of Receivers, Adoption of Employment Contracts
Employment Law Insolvency Law Redundancy Payments Personal Liability of Receivers Adoption of Employment Contracts

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Parties

Mr Hughes

Appellant

Alan David Kenningham and John Charles Heath (Receivers)

3rd Respondent

8 Applicants (Messrs Murdoch, Fairburn, Robertson, Wildman, Oxtoby, Hirst, Watson, Patrick)

Applicants

Secretary of State for Employment

2nd Respondent

Procedural Posture

Employment Appeal / Appeal From Industrial Tribunal

Legal Issues

  1. 1 Are receivers personally liable for statutory redundancy payments under Section 37(1) of the Insolvency Act 1986?
  2. 2 Did the receivers adopt the contracts of employment for the purposes of Section 37(1)?

Ratio Decidendi

Receivers are not personally liable for statutory redundancy payments under Section 37(1) of the Insolvency Act 1986 because such payments arise from statute, not from the contract of employment adopted by the receivers.

Court Disposition

Appeal dismissed

Orders

  • No personal liability attaches to the receivers for statutory redundancy payments.
  • Mr Hughes remains responsible for redundancy payments to the applicants.