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SCHEDULE 3SPREFERRED DEBTS

PART 2SInterpretation of Part 1

Amounts payable by way of remunerationS

10(1)For the purposes of paragraph 2, a sum is payable by the debtor to a person by way of remuneration in respect of any period if—S

(a)it is paid as wages or salary (whether payable for time or for piece work or earned wholly or partly by way of commission) in respect of services rendered to the debtor in that period, or

(b)it is an amount falling within sub-paragraph (2) and is payable by the debtor in respect of that period.

(2)An amount falls within this sub-paragraph if it is—

(a)a guarantee payment under section 28(1) to (3) of the Employment Rights Act 1996 (entitlement to payment for workless day),

(b)a payment for time off under section 53(1) (looking for new employment or making arrangements for training for future employment) or 56(1) (antenatal care) of that Act,

(c)remuneration on suspension on medical grounds under section 64 of that Act,

(d)a payment for time off under section 169(1) of the Trade Union and Labour Relations (Consolidation) Act 1992 (trade union duties), or

(e)remuneration under a protective award made by an employment tribunal under section 189 of that Act (redundancy dismissal with compensation).

(3)For the purposes of paragraph 2(2), holiday remuneration is deemed, in the case of a person (“P”) whose employment has been terminated by or in consequence of the award of sequestration of P's employer's estate, to have accrued to P in respect of a period of employment if, by virtue of P's contract of employment or of any enactment, that remuneration would have accrued in respect of that period if P's employment had continued until P became entitled to be allowed the holiday.

(4)In sub-paragraph (3), “enactment” includes an order made or direction given under an enactment.

(5)Without prejudice to the preceding provisions of this paragraph—

(a)any remuneration payable by the debtor to a person in respect of a period—

(i)of holiday, or

(ii)of absence from work through sickness or other good cause,

is deemed to be wages, or as the case may be salary, in respect of services rendered to the debtor in that period, and

(b)references in this paragraph to remuneration in respect of a period of holiday include references to any sums which, if they had been paid, would have been treated for the purposes of the enactments relating to social services as earnings in respect of that period.

Commencement Information

I1Sch. 3 para. 10 in force at 30.11.2016 by S.S.I. 2016/294, reg. 2