Employment Rights Act 1996

183 Insolvency. E+W+S

(1) An employer has become insolvent for the purposes of this Part—

(a) where the employer is an individual, if (but only if) subsection (2) is satisfied, F1 . . .

(b) where the employer is a company, if (but only if) subsection (3) is satisfied [F2 , and

F2 (c) where the employer is a limited liability partnership, if (but only if) subsection (4) is satisfied.]

(2) This subsection is satisfied in the case of an employer who is an individual—

(a) in England and Wales if—

[F3 (ai) a moratorium period under a debt relief order applies in relation to him,]

(i) he has been adjudged bankrupt or has made a composition or arrangement with his creditors, or

(ii) he has died and his estate falls to be administered in accordance with an order under section 421 of the M1 Insolvency Act 1986, and

(b) in Scotland if—

(i) sequestration of his estate has been awarded or he has executed a trust deed for his creditors or has entered into a composition contract, or

(ii) he has died and a judicial factor appointed under section 11A of the M2 Judicial Factors (Scotland) Act 1889 is required by that section to divide his insolvent estate among his creditors.

(3) This subsection is satisfied in the case of an employer which is a company—

(a) if a winding up order F4 . . . has been made, or a resolution for voluntary winding up has been passed, with respect to the company,

[F5 (aa) if the company is in administration for the purposes of the Insolvency Act 1986,]

(b) if a receiver or (in England and Wales only) a manager of the company’s undertaking has been duly appointed, or (in England and Wales only) possession has been taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the company comprised in or subject to the charge, or

(c) if a voluntary arrangement proposed in the case of the company for the purposes of Part I of the M3 Insolvency Act 1986 has been approved under that Part of that Act.

[F6 (4) This subsection is satisfied in the case of an employer which is a limited liability partnership—

(a) if a winding-up order, an administration order or a determination for a voluntary winding-up has been made with respect to the limited liability partnership,

(b) if a receiver or (in England and Wales only) a manager of the undertaking of the limited liability partnership has been duly appointed, or (in England and Wales only) possession has been taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the limited liability partnership comprised in or subject to the charge, or

(c) if a voluntary arrangement proposed in the case of the limited liability partnership for the purposes of Part I of the Insolvency Act 1986 has been approved under that Part of that Act.]

Textual Amendments

F1 Word in s. 183(1) omitted (6.4.2001) by virtue of S.I. 2001/1090, reg. 5 Sch. 5 para. 19(2)

F2 S. 183(1)(c) and word “and” immediately preceding it inserted (6.4.2001) by S.I. 2001/1090, reg. 5, Sch. 5 para. 19(1)(2)

F3 S. 183(2)(ai) inserted (24.2.2009 for certain purposes otherwise 6.4.2009) by Tribunals, Courts and Enforcement Act 2007 (c. 15), ss. 108(3), 148(5), Sch. 20 para. 17; S.I. 2009/382, art. 2(a)(b)

F4 Words in s. 183(3)(a) repealed (15.9.2003) by Enterprise Act 2002 (c. 40), ss. 248, 278, 279, Sch. 17 para. 49(3)(a), Sch. 26 (with s. 249(1)-(3)); S.I. 2003/2093, art. 2(1) (subject to arts. 5-8) (as amended by S.I. 2003/3340, art. 2)

F5 S. 183(3)(aa) inserted (15.9.2003) by Enterprise Act 2002 (c. 40), ss. 248, 278, Sch. 17 para. 49(3)(b) (with s. 249(1)-(3)); S.I. 2003/2093, art. 2(1) (subject to arts. 5-8) (as amended by S.I. 2003/3340, art. 2)

F6 S. 183(4) inserted (6.4.2001) by S.I. 2001/1090, reg. 5, Sch. 5 para. 19(1)(3)

Marginal Citations

M1 1986 c. 45.

M2 1889 c. 39.

M3 1986 c. 45.