Employment Law - Top Tips for Employers

Employment Law - Top Tips for Employers
​ Employing people seems like a fairly simple process - hire them, then set them to work…but is it really that easy? We round up our top tips for employers when it comes to employment law and legal practices in the workplace. Many employers find the list of employment rights and legal responsibilities intimidating. But conforming to employer's lega...
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Discrimination, Harassment and Victimisation - The Basics

Discrimination, Harassment and Victimisation - The Basics
​ Let's be honest – discrimination, bullying, victimisation and harassment can be portrayed as meaning the same thing – especially in a workplace environment. So what's the difference between each definition? We run through the basics of the legal meanings of discrimination, harassment and victimisation. In the Equality Act 2010, victimisation and ...
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Zero-Hour Contract FAQs

Zero-Hour Contract FAQs
It is estimated that there are some 900,000 people in the UK are on zero-hours contracts; circa 9 years ago the number of people on a zero-hour contract was estimated at just 143,000. We look at the most frequently asked questions relating to this ever-popular method of employment. ​ WHAT IS A ZERO-HOUR CONTRACT? A zero hour contract can be simply ...
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Employment Law - Top Tips for Employers - Part Two

Copy of Employment Law - Top Tips for Employers - Part Two
​ Managing a team within the workplace can be a daunting experience - we round up some more of our top tips for employers around appeals, pregnancy and office banter. Many employers are apprehensive when it comes to more 'delicate' issues within the workplace; what exactly should you do when a female member of staff informs you that they're pregnan...
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983 Hits

What can you do if an Employee has Breached a Settlement Agreement?

What can You do if an Employee has Breached a Settlement Agreement?
Settlement agreements are fairly commonplace within the employment field; they're a legally binding arrangement that waives an individual's right to make a claim covered under the terms of the agreement to an Employment Tribunal or Court. But what can an employer do if an employee breaches the terms set out by their approved settlement agreement? T...
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3413 Hits

How sure do you have to be to dismiss for gross misconduct?

How Sure do You have to be to Dismiss for Gross Misconduct?
​ Gross misconduct is defined as behaviour from an employee which is so considered to be so bad that it destroys the relationship between employee and employer. Employers must be aware of the law before heading into this territory – read our FAQs relating to gross misconduct for employers. Where an employee has more than two years' service, they ha...
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2409 Hits

Employment Law - Equal Pay for Equal Work

Employment Law - Equal Pay for Equal Work
The pay difference between men and women who carry out the same or similar roles is very much still a live issue, 47 years after the Equal Pay Act. The Equality Act 2010 now tackles the issues of equal pay for equal work. We look at exactly what this means for employers and employees. You only need to cast your memory back to July 2017 when the BBC...
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Mental Health at Work FAQs

Mental Health at Work FAQs
Recent research has confirmed that there is still a culture of fear and silence around mental health at work, which can prove costly to employers. We look at what is mental health, what managers can do to help and how to avoid discrimination. Mental health is more common that you think. One in four people will experience symptoms of mental ill heal...
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1224 Hits

Collaborative Law FAQs

Collaborative Law FAQs
Divorce has a certain stigma attached to it, and the entire process is seen as quite hostile. Collaborative law is a procedure that is looking to change that opinion and to help couples get through their divorce in a more appealing way. We look at some of the most frequently asked questions relating to collaborative law. Most clients visit a divorc...
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1038 Hits

Buy-To-Let Property Repairs - Who is Responsible?

Buy-To-Let Property Repairs - Who is Responsible?
Many people in the UK now own a property that they let out, but being a landlord brings legal responsibilities and you must make sure you know the rules. Our property law experts explain who is responsible for keeping a buy-to-let property in good repair. ​ ​LANDLORDS' OBLIGATIONS If you own and let out residential property on a short-term basis yo...
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1536 Hits

How to get on the property ladder

How to Get on The Property Ladder
It has been well publicised that getting on the property ladder is becoming a more difficult proposition for first-time buyers as lenders abandon the standard model of 10% deposit and a mortgage. We take a look at some of the alternatives on the market for purchasing that elusive first property. ​ SHARED OWNERSHIP Shared ownership involves purchasi...
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1595 Hits

Arrears of Maintenance - What Can You Do?

Arrears of Maintenance - What Can You Do?
If you have divorced and receive maintenance payments do you know what to do if these suddenly stop? How would you claim arrears on these payments? We give the lowdown on what to do in this difficult and stressful situation. In financial remedy proceedings, the Court has powers to require one spouse to make maintenance payments to the other. This c...
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Will FAQs - The Basics

Will FAQs - The Basics
In today's society, many people are choosing to put off making a Will. Perhaps it's because we're all living longer – you don't need to think about that yet, do you? In fact, making a Will is the most vital thing you can do to protect your loved ones. A properly drafted Will ensures that you decide who receives your Estate when you die and that all...
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901 Hits

Disability in the Workplace FAQs

Disability in the Workplace FAQs
As an employer, it pays to be aware of your responsibilities for disabled persons to avoid potential claims for disability discrimination and the financial penalties these bring. Employment tribunal claims for disability discrimination can lead to the burden of huge financial penalties for employers. It therefore pays to be aware of your responsibi...
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What you should do if you've been unfairly dismissed

What You Should Do If You've Been Unfairly Dismissed
Being dismissed from your job or position is a traumatic experience for anyone, and it can be all the worse if you feel the dismissal was unfair or undeserved. This guide will take you through the steps you'll need to follow to get the best possible resolution: 1. Have you been 'dismissed'? 2. Was your dismissal legally 'unfair'? 3. Appeal the deci...
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1765 Hits

Prenuptial Agreement FAQs

Prenuptial Agreement FAQs
Society has witnessed a big change in couples' attitudes towards their finances, and more and more newlyweds are now seeking to gain a prenuptial agreement as part of their 'happily ever after' plans. Couples in the UK now spend an estimated £10 billion on weddings each year, typically parting with a little over £36,000 overall, including everythin...
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1053 Hits

Seven Tips for Choosing a Divorce Lawyer

Seven Tips for Choosing a Divorce Lawyer
Deciding to get divorced is a huge decision, and choosing a divorce lawyer can also be an emotional and stressful experience. Read our seven tips for finding your ideal solicitor - for both yours and your family's wellbeing. Ending a marriage or a civil partnership is going to be a difficult and emotional time. It may involve children, assets, pets...
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1872 Hits

Order of priority debts in administration

Order of Priority Debts

The money realised from the assets of an insolvent company is applied to meet claims of creditors in a set order of priority.  By definition, an insolvent company does not have sufficient assets to pay in full all the liabilities that it owes to its creditors. A primary function of administration and liquidation is to realise the assets of the insolvent company and to distribute the assets among the insolvent company's creditors.

The Insolvency Act 1986 (IA 1986) and the Insolvency Rules 196 (IR 1986) provide a statutory scheme for how an Insolvency practitioner (IP) must apply assets to meet creditor claims. The scheme puts creditors into different classes and the IP applies a descending order of priority. An IP cannot distribute asset realisations to a class of creditors until he has repaid in full the claims of all creditors in the prior ranking class.

Priority of asset distribution in insolvency

The money realised from the assets of an insolvent company is applied to meet the claims of creditors descending order of priority. When one class of creditor has been repaid in full, the remaining assets are applied to the next class (known as a pari passu distribution).

First ranking claims

Holders of fixed charges and creditors with a proprietary interest in assets. A creditor that holds a valid fixed charge over a company's assets is entitled to the proceeds of the realisation of those assets in satisfaction of the liability due to it from the company.

Second ranking claims: expenses of the insolvent estate

The IP pays the expenses of the insolvent estate before paying any other claims. The key point of the priority of expenses include expenses incurred in the course of trading an insolvent company or preserving the assets and can rank ahead of the remuneration of the IP.

Third ranking claims: preferential creditors

After the IP has paid all the expenses of the insolvent estate, he pays the preferential debts from the remaining assets. Preferential debts rank equally in the distribution. Certain claims of some unsecured creditors' debts are given "preferential" status, such as contributions to occupational and state pension schemes; wages and salaries of employees for work done in the four months before the insolvency up to a maximum of £800 per person; holiday pay due to any employee whose contract has been terminated.

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