Allders Department Stores Limited (In Administration) -In the Matter of the Insolvency Act 1986: ChD 16 Feb 2005

The Administrators sought directions in relation to the treatment of redundancy payments which will be due if the Administrators terminate the contracts of certain employees of the Companies.
Held: The liability of administrators to pay out for redundancy of unfair dismissal claims by employees during the period of administration was not a proper expense of the administration, and were not to be treated as preferential. Liabilities having priority to the claims of the administrators were wages of salary liabilities adopted after 14 days of appointment. Redundancy and unfair dismissal payments were not wages or salary within the schedule.


Mr Justice Collins


[2005] EWHC 172 (Ch), Times 02-Mar-2005




Insolvency Act 1986 Sch 6


England and Wales

Insolvency, Employment

Updated: 06 August 2022; Ref: scu.223107