asked the Secretary of State for Employment if, in view of the fact that former employees of firms that have gone into voluntary liquidation may have to wait years before learning if they can obtain their back pay or holiday pay due, he will consider giving priority to such claimants when the claim due has been outstanding for over three years for wages due.
Under the insolvency provisions of the Employment Protection (Consolidation) Act 1978, my Department is empowered to pay from the redundancy fund certain debts, within limits, owed to employees by employers who have become insolvent. These debts include arrears of pay, holiday pay and payment in lieu of notice. The provisions came into effect on 20 April 1976 under the Employment Protection Act 1975 and apply in respect of employers who became insolvent, including companies for which a resolution for voluntary winding-up has been passed, on or after that date.If my hon. Friend has a particular case in mind, I will be pleased to investigate it for him if he will write to me with the relevant details.