COVID-19: administrators' implementation of the Coronavirus Job Retention Scheme and adoption of employment contracts (High Court): R&I aspects | Practical Law

COVID-19: administrators' implementation of the Coronavirus Job Retention Scheme and adoption of employment contracts (High Court): R&I aspects | Practical Law

In Re Carluccio's Ltd [2020] EWHC 886 (Ch), the High Court considered the priority of payments that were due to employees who were furloughed by a company in administration under the Coronavirus Job Retention Scheme. The court also considered what liability the administrator had in respect of such payments, and in so doing considered the nature of "adoption" of a contract of employment under paragraph 99(5) of Schedule B1 to the Insolvency Act 1986.

COVID-19: administrators' implementation of the Coronavirus Job Retention Scheme and adoption of employment contracts (High Court): R&I aspects

by Practical Law Restructuring and Insolvency
Published on 16 Apr 2020
In Re Carluccio's Ltd [2020] EWHC 886 (Ch), the High Court considered the priority of payments that were due to employees who were furloughed by a company in administration under the Coronavirus Job Retention Scheme. The court also considered what liability the administrator had in respect of such payments, and in so doing considered the nature of "adoption" of a contract of employment under paragraph 99(5) of Schedule B1 to the Insolvency Act 1986.