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CONTRACTS OF EMPLOYMENT AND REDUNDANCY PAYMENTS ACT (NORTHERN IRELAND) 1965 - SECT 42

1975 c.15

42.(1) Where an employee claims that his employer is liable to pay to him an
employer's payment, and either

(a)that the employee has taken all reasonable steps (other than
legal proceedings) to recover the payment from the employer and that the
employer has refused or failed to pay it, or has paid part of it and has
refused or failed to pay the balance, or

(b)that the employer is insolvent and that the whole or part of the payment
remains unpaid,

(2) If on an application under this section the Ministry is satisfied

(a)that the employee is entitled to the employer's payment;

(b)that either the condition specified in subsection (1)(a) or the condition
specified in subsection (1)(b) is fulfilled; and

(c)that, in a case where the employer's payment is such a payment as is
mentioned in paragraph (b) or paragraph (c) of section 40(1), the employee's
right to the payment arises by virtue of a period of employment (computed in
accordance with the provisions of the agreement in question) which is not less
than one hundred and four weeks,

(3) Where the Ministry pays a sum to an employee in respect of an employer's
payment,

(a)all rights and remedies of the employee with respect to the employer's
payment, or (if the Ministry has paid only part of it) all his rights and
remedies with respect to that part of the employer's payment, shall be
transferred to and vest in the Ministry; and

(b)any decision of a tribunal requiring the employer's payment to be paid to
the employee shall have effect as if it required that payment, or, as the case
may be, that part of it which the Ministry has paid, to be paid to
the Ministry;

(4) Where the Ministry pays a sum under this section in respect of an
employer's payment, then (subject to the following provisions of this
subsection) section 40 shall apply as if that sum had been paid by the
employer to the employee on account of that payment; but if, in a case falling
within paragraph (a) of subsection (1), it appears to the Ministry that the
refusal or failure of the employer to pay the employer's payment, or part of
it, as the case may be, was without reasonable excuse, the Ministry (subject
to section 44) may withhold any rebate to which the employer would otherwise
be entitled in respect of the employer's payment, or may reduce the amount of
any such rebate to such extent as the Ministry considers appropriate.

(5) For the purposes of this section an employer shall be taken to be
insolvent if

(a)he has become bankrupt or has made a composition or arrangement with his
creditors;

(b)he has died and an order has been made under section 21 of the Bankruptcy
Amendment Act (Northern Ireland) 1929 for the administration of his estate
according to the law of bankruptcy, or by virtue of an order of the court his
estate is being administered in accordance with the rules set out in Part I of
Schedule 1 to the Administration of Estates Act (Northern Ireland) 1955; or

(c)where the employer is a company, a winding-up order has been made with
respect to it or a resolution for voluntary winding-up has been passed with
respect to it, or a receiver or manager of its undertaking has been duly
appointed, or possession has been taken, by or on behalf of the holders of any
debentures secured by a floating charge, of any property of the company
comprised in or subject to the charge.

(6) In this section "legal proceedings" does not include any proceedings
before a tribunal, but includes any proceedings to enforce a decision or award
of a tribunal.

© 1965 Crown Copyright

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