Insolvency

Case 2: The facts

Cameo Knitwear went into liquidation without paying its employees their contractual lay-off pay. The workers then claimed from the secretary of state.

The ruling

The contractual provisions for lay off do not come under the definition of "pay" under the insolvency provisions. The only pay rights that are covered are pay in return for work that has been done. The only rights the employees had were against the company itself, if it had sufficient assets to pay them.

* Benson v Secretary of State [2003] IRLR 748

Case 3: The facts

This case arises from a claim for loss of wages from the state, where the employer is bankrupt and can no longer pay them.

The ruling

The European Court of Justice ruled that placing time limits for submitting claims was not contrary to European Union law so long as they were not less than what would normally apply as a time limit in other legal claims. The ruling means that the six-month time limit for making redundancy pay claims is not contrary to EU law.

* Pflucke v Bundesanstalt fur Arbeit Case C-125/01