§ 45. Mr. Neubertasked the Secretary of State for Trade whether he proposes action to make employees of a company which goes into liquidation preferential creditors to the extent of (a) any amount properly incurred as expenses in the six months preceding liquidation, and (b) £2,000 in respect of wages or salary.
§ Mr. ShoreUnder the Employment Protection Bill, now in Report stage, employees of a company which goes into liquidation will receive prompt payments of their claims from the Redundancy Fund. The question of whether employees' claims for repayment of expenses should be accorded preferential treatment in a liquidation will be considered when the Department undertakes its major review of insolvency legislation. The Government have at present under consideration proposals for legislation which includes increases in all monetary limits in existing insolvency legislation, including those concerning preferential claims.