The Employment Rights Act 1996 and Pension Schemes Act 1993 (Amendment) Regulations 2017

EXPLANATORY NOTE

(This note is not part of these Regulations)

These Regulations amend the transposition of Directive 2008/94 EC of the European Parliament and the Council on the protection of employees in the event of the insolvency of their employer (“the Directive”)(1).

The Directive provides for payment to employees of certain sums due to them arising from contracts of employment where collective insolvency proceedings have been opened in respect of an employer based in a member State.

Sections 166 and 182 of the Employment Rights Act 1996 (“ERA 1996”) and the Pension Schemes Act 1993 (“the PSA 1993”) (together “the Acts”) provide for payment to employees of certain sums owed to employees and unpaid pensions contributions in circumstances where their employer becomes insolvent. Sections 166 and 183 of ERA 1996 and sections 123 and 124 of the PSA 1993 make provision as to when an employer becomes insolvent for those purposes. Regulations 2 and 3 extend the circumstances in which an employer becomes insolvent to bring the provisions of the Acts in line with the Directive.

An impact assessment has not been prepared in respect of these Regulations as minimal or no impact on the private or voluntary sector is foreseen.

An Explanatory Memorandum has been prepared and is available alongside these Regulations at www.legislation.gov.uk.

(1)

OJ No L283, 28.10.2008, p. 36.