Insolvency Act 1985

The Employment Protection (Consolidation) Act 1978

31 (1) The [1978 c. 44.] Employment Protection (Consolidation) Act 1978 shall be amended as follows.

(2) In section 106 (which provides for the payment of money out of the Redundancy Fund where an employer is insolvent)—

(a) in subsection (5), for paragraphs (a) and (b) there shall be substituted the following paragraphs—

“(a) he has been adjudged bankrupt or has made a composition or arrangement with his creditors;

(b) he has died and his estate falls to be administered in accordance with an order under section 228 of the Insolvency Act 1985 ; or”;

(b) in paragraph (c) of that subsection and in paragraph (c) of subsection (6), after the words " winding-up order " there shall be inserted the words " or an administration order " and at the end there shall be inserted the words " or a composition or scheme proposed for the purposes of Chapter II of Part II of the Insolvency Act 1985 is approved under that Chapter ".

(3) In section 123 (payment of unpaid contributions to occupational pension scheme)—

(a) in subsection (4), for the words " section 121(2)" there shall be substituted the words " section 122(4) ";

(b) in subsection (6)—

(i) after the words " a liquidator" there shall be inserted the words " an administrator " ; and

(ii) for the words from "' liquidator * and " onwards there shall be substituted the words " ' trustee', in relation to a composition or arrangement, includes the supervisor of a composition or scheme proposed for the purposes of, and approved under, Chapter II of Part II or Chapter I of Part III of the Insolvency Act 1985. "

(4) In section 125 (transfer to Secretary of State of rights and remedies), for paragraph (a) of subsection (2) there shall be substituted the following paragraph—

“(a) sections 89, 166 and 181 of, and Schedule 4 to, the Insolvency Act 1985 and any rules under that Act applying the said section 181 to the winding up of a company; and”.

(5) In section 127 (interpretation of sections 122 to 126)—

(a) for paragraphs (a) and (b) of subsection (1) there shall be substituted the following paragraphs—

“(a) he has been adjudged bankrupt or has made a composition or arrangement with his creditors ;

(b) he has died and his estate falls to be administered in accordance with an order under section 228 of the Insolvency Act 1985 ; or”;

(b) in paragraph (c) of that subsection and in paragraph (c) of subsection (2), after the words "winding-up order" there shall be inserted the words " or an administration order " and at the end there shall be inserted the words " or a composition or scheme proposed for the purposes of Chapter II of Part II of the Insolvency Act 1985 is approved under that Chapter ".