1E9Ct5D

econversion). The dismissals shall take place within one month from the date of thejudgment approving the plan (except for protected employees).c. England and WalesDebts owed to employees are a liability of the insolvent employer and, in mostcases, will be an unsecured debt. These debts are ranked second to bottom in theorder of insolvency priority for the purposes of calculating the proportion of debt to berepaid. Certain “remuneration” ranks as preferential debts and is third in the order ofinsolvency priority, behind secured debts and costs and expenses of the insolvencyprocess. This is subject to a cap of all remuneration owed for the four month periodbefore the start of the insolvency proceedings, up to a maximum of £800. Holidaypay, which is included within renumeration, is not limited in terms of time or financiallevel.If an Administrator decides to carry on an insolvent business, it is possible that theAdministrator will retain all or some of the employees. The Administrator has 14days to choose whether to adopt employment contracts. This means that anAdministrator is able to terminate such contracts within the first 14 days ofappointment without creating a qualifying liability. After 14 days, the Administrator isdeemed to have adopted any employment contracts that have not been terminated.44