Companies Act 1985

Debts to and in respect of company's employees

9 All wages or salary (whether or not earned wholly or in part by way of commission) of any clerk or servant in respect of services rendered to the company during 4 months next before the relevant date, and ail wages (whether payable for time or for piece work) of any workman or labourer in respect of services so rendered.

10 All accrued holiday remuneration becoming payable to any clerk, servant, workman or labourer (or in the case of his death to any other person in his right) on the termination of his employment before or by the effect of the winding-up order or resolution.

This includes, in relation to any person, all sums which, by virtue either of his contract of employment or of any enactment (including any order made or direction given under an Act), are payable on account of the remuneration which would, in the ordinary course, have become payable to him in respect of a period of holiday had his employment with the company continued until he became entitled to be allowed the holiday.

11 The following amounts owed by the company to an employee are treated as wages payable by it to him in respect of the period for which they are payable—

(a) a guarantee payment under section 12(1) of the [1978 c. 44.] Employment Protection (Consolidation) Act 1978 (employee without work to do for a day or part of a day),

(b) remuneration on suspension on medical grounds under section 19 of that Act,

(c) any payment for time off under section 27(3) (trade union duties), 31(3) (looking for work, etc.) or 31A(4) (ante-natal care) of that Act,

(d) statutory sick pay under Part I of the [1982 c. 24.] Social Security and Housing Benefits Act 1982, and

(e) remuneration under a protective award made by an industrial tribunal under section 101 of the [1975 c. 71.] Employment Protection Act 1975 (redundancy dismissal with compensation).

12 (1) The remuneration to which priority is to be given under paragraph 9 shall not, in the case of any claimant, exceed £800 ;

Provided that where a claimant under paragraph 9 is a labourer in husbandry who has entered into a contract for the payment of a portion of his wages in a lump sum at the end of the year of hiring, he has priority in respect of the whole of that sum, or a part of it, as the court may decide to be due under the contract, proportionate to the time of service up to the relevant date.

(2) No increase or reduction of the money sum specified above in this paragraph affects any case where the relevant date (or, where provisions of this Schedule apply by virtue of section 196, the date referred to in subsection (4) of that section) occurred before the coming into force of the increase or reduction.