The Insolvency (Northern Ireland) Order 1989

Interpretation for Category 5

13.—(1) For the purposes of paragraphs 9 to 12, a sum is payable by the debtor to a person by way of remuneration in respect of any period if—

(a)it is paid as wages or salary (whether payable for time or for piece work or earned wholly or partly by way of commission) in respect of services rendered to the debtor in that period, or

(b)it is an amount falling within sub-paragraph (2) and is payable by the debtor in respect of that period.

(2) An amount falls within this sub-paragraph if it is—

(a)a guarantee payment under Article 3(1) of the Industrial Relations (No. 2) (Northern Ireland) Order 1976(1) (employment without work to do for a day or part of a day);

(b)remuneration on suspension on medical grounds under Article 9 of that Order of 1976;

(c)any payment for time off under Article 37(4) (trade union duties), 41(3) (looking for work, etc.) or 41A(4) (ante-natal care) of that Order of 1976; or

(d)remuneration under a protective award made by an industrial tribunal under Article 51 of the Industrial Relations (Northern Ireland) Order 1976(2) (redundancy dismissal with compensation).

14.—(1) This paragraph relates to a case in which a person’s employment has been terminated by or in consequence of his employer going into liquidation or being adjudged bankrupt (his employer being a company not in liquidation) by or in consequence of—

(a)a receiver being appointed as mentioned in Article 50 (debenture-holders secured by floating charge), or

(b)the taking of possession by debenture-holder (so secured), as mentioned in Article 205 of the Companies Order.

(2) For the purposes of paragraphs 9 to 12, holiday remuneration is deemed to have accrued to that person in respect of any period of employment if, by virtue of his contract of employment or of any statutory provision, that remuneration would have accrued in respect of that period if his employment had continued until he became entitled to be allowed the holiday.

(3) The reference in sub-paragraph (2) to any statutory provision includes an order or direction made under a statutory provision.

15.  Without prejudice to paragraphs 13 and 14—

(a)any remuneration payable by the debtor to a person in respect of a period of holiday or of absence from work through sickness or other good cause is deemed to be wages or (as the case may be) salary in respect of services rendered to the debtor in that period, and

(b)references here and in those paragraphs to remuneration in respect of a period of holiday include any sums which, if they had been paid, would have been treated for the purposes of the statutory provisions relating to social security as earnings in respect of that period.