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Coronavirus Job Retention Scheme: case re availability to administrators - Re Carluccio's Ltd (In Administration) [ChD] 13.04.20 (Unreported)

The Coronavirus Job Retention Scheme, under which employees whose services could not be used because of the Covid-19 pandemic could be furloughed, was available to the administrators of a company in administration if there was a reasonable likelihood of rehiring the workers, for example, following a sale of the business. The court explained how the Scheme should operate with insolvency legislation. The Insolvency Act 1986 Sch.B1 para.99(5) was to be interpreted as permitting administrators to give effect to the Scheme and to give super-priority to furlough payments. There was also useful discussion as to why an employee's consent to a variation of their contract for furlough purposes could not be inferred from their silence or inaction.
Category: Employment Keyword(s): Insolvency; Furlough; Coronavirus. Area(s) of law: Employment; Litigation; Corporate and Commercial Law.
Source: [2020] EWHC 886 (Ch).

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