On the issue as to whether, when a company is in administration, liability for protective awards and payments in lieu of notice take priority over the expenses of the administration, two inconsistent decisions have been handed down in the last month by the High Court. The first decision, issued at the end of July, stated that protective awards and payments in lieu of notice did take priority. Then, in early August,  a decision was issued stating that these payments did not take priority.

Urgent appeals in respect of each decision were heard by the High Court who, following analysis (and criticism) of the legislation, upheld the latter decision stating that protective awards and payments in lieu of notice do not take priority over administration expenses in an insolvency situation.

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