When acting effectively as a guarantor of a company’s obligations to its employees upon insolvency in paying unpaid wages, the Secretary of State for Employment was entitled to set off against those payments, payments made by way of compensation by administrative receivers by way of a protective award for employment entitlements. European Directives did not apply on receiverships. The House described the provisions of section 166 and 167 as a ‘state guarantee’ and the Secretary of State was a ‘guarantor, liable only for whatever the employee was entitled to be paid by his employer’.
Citations:
Times 19-Jul-1999, [1999] UKHL 29, [1999] ICR 898
Links:
Jurisdiction:
England and Wales
Citing:
Appeal from – Mann and Others v Secretary of State for Employment CA 30-Sep-1996
LMA An Industrial tribunal does not have the jurisdiction to entertain Francovich state liability for damages actions – these must be heard by the ordinary courts. . .
Cited by:
Cited – Secretary of State for Trade and Industry v Frid HL 13-May-2004
The company went into insolvent liquidation. The secretary of state was to make payments to employees and there were other state preferential creditors. At the same time a refund of VAT was due from the Commissioners of customs and Excise.
Lists of cited by and citing cases may be incomplete.
Employment, Insolvency, European
Updated: 17 May 2022; Ref: scu.159013