| Commentary

171 Contracts of employment

| Commentary

171 Contracts of employment

In respect of contracts of employment adopted by an administrative receiver after 15 March 1994, the legal position may be summarised thus1:

  1. 171.1

        An administrative receiver has 14 days after his appointment to decide whether or not to adopt a contract of employment. In order to avoid personal liability, he must repudiate the contract within that period.

  2. 171.2

        If he continues the contract beyond the 14-day period, he is deemed to have adopted it by conduct. If so, he becomes personally liable for the ‘qualifying liabilities’ set out in the Insolvency Act 19862

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