(1)For the purposes of this Chapter, an employer shall be taken to be insolvent if, but only if, in England and Wales—
(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 421 of the M1Insolvency Act 1986; or
(c)where the employer is a company—
(i)a winding-up order F1... is made or a resolution for voluntary winding up is passed with respect to it [F2or the company enters administration],
(ii)a receiver or manager of its undertaking is duly appointed,
(iii)possession is 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
(iv)a voluntary arrangement proposed for the purpose of Part I of the M1Insolvency Act 1986 is approved under that Part.
(2)For the purposes of this Chapter, an employer shall be taken to be insolvent if, but only if, in Scotland—
(a)sequestration of his estate is awarded or he executes a trust deed for his creditors or enters into a composition contract;
(b)he has died and a judicial factor appointed under section 11A of the M2Judicial Factors (Scotland) Act 1889 is required by that section to divide his insolvent estate among his creditors; or
(c)where the employer is a company—
(i)a winding-up order F3... is made or a resolution for voluntary winding up is passed with respect to it [F4or the company enters administration],
(ii)a receiver of its undertaking is duly appointed, or
(iii)a voluntary arrangement proposed for the purpose of Part I of the M1Insolvency Act 1986 is approved under that Part.
(3)In this Chapter—
“contract of employment”, “employee”, “employer” and “employment” and other expressions which are defined in [F5the Employment Rights Act 1996] have the same meaning as in that Act;
“holiday pay” means—
pay in respect of holiday actually taken; or
any accrued holiday pay which under the employee’s contract of employment would in the ordinary course have become payable to him in respect of the period of a holiday if his employment with the employer had continued until he became entitled to a holiday;
F6...
F7(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)Any reference in this Chapter to the resources of a scheme is a reference to the funds out of which the benefits provided by the scheme are from time to time payable.
Textual Amendments
F1Words in s. 123(1)(c)(i) omitted (15.9.2003) by virtue of The Enterprise Act 2002 (Insolvency) Order 2003 (S.I. 2003/2096), art. 1(1), Sch. para. 22(a)(i) (with art. 6)
F2Words in s. 123(1)(c)(i) added (15.9.2003) by The Enterprise Act 2002 (Insolvency) Order 2003 (S.I. 2003/2096), art. 1(1), Sch. para. 22(a)(ii) (with art. 6)
F3Words in s. 123(2)(c)(i) omitted (15.9.2003) by virtue of The Enterprise Act 2002 (Insolvency) Order 2003 (S.I. 2003/2096), art. 1(1), Sch. para. 22(b)(i) (with art. 6)
F4Words in s. 123(2)(c)(i) added (15.9.2003) by The Enterprise Act 2002 (Insolvency) Order 2003 (S.I. 2003/2096), art. 1(1), Sch. para. 22(b)(ii) (with art. 6)
F5Words in s. 123(3) substituted (22.8.1996) by Employment Rights Act 1996 (c. 18), s. 243, Sch. 1 para. 61(2) (with ss. 191-201)
F6Words in s. 123(3) repealed (22.9.2005) by Pensions Act 2004 (c. 35), s. 322(1), Sch. 12 para. 19(a), Sch. 13; S.I. 2005/2447, art. 2(3)
F7S. 123(4) repealed (22.9.2005) by Pensions Act 2004 (c. 35), s. 322(1), Sch. 12 para. 19(b), Sch. 13; S.I. 2005/2447, art. 2(3)
Modifications etc. (not altering text)
C1S. 123 applied (6.4.1997) by Pensions Act 1995 (c. 26), ss. 81(8), 180(1) (with s. 121(5)); S.I. 1997/664, art. 2(3), Sch. Pt. 2
Commencement Information
I1Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2
Marginal Citations