juris

Section 225: Effect on employees

Insolvency Act · PART III: WINDING UP AND ALTERNATIVES

consolidated text (as at 2017, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.

225. Effect on employees (1) The appointment of an administrator does not automatically terminate an employment agreement to which the company is a party. (2) The administrator is not personally liable for any obligation of the company under an employment agreement to which the company is a party, unless the administrator expressly adopts the agreement in writing, or subsection (3) applies. (3) The administrator is personally liable for payment of wages or salary that, during the administration of the company, accrue under a contract of employment with the company that was entered into before the administrator’s appointment, unless the administrator has lawfully given notice of the termination of the contract within 21 days of appointment. (4) The Court may, on the administrator’s application, extend the period of 21 days in subsection (3) within which notice of termination must be given, and may extend it on terms that the Court thinks appropriate.

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