Employment Rights Act 1996, section 185

The appropriate date

Part XII Insolvency of employers

In this Part “the appropriate date”—

(a)M48in relation to arrears of pay (not being remuneration under a protective award made under section 189 of the Trade Union and Labour Relations (Consolidation) Act 1992) and to holiday pay, means the date on which the employer became insolvent,

(b)in relation to a basic award of compensation for unfair dismissal and to remuneration under a protective award so made, means whichever is the latest of—

(i)the date on which the employer became insolvent,

(ii)the date of the termination of the employee’s employment, and

(iii)the date on which the award was made, and

(c)in relation to any other debt to which this Part applies, means whichever is the later of—

(i)the date on which the employer became insolvent, and

(ii)the date of the termination of the employee’s employment.

Definitions used in section 185 4

employer

(4) In this Act “employer”, in relation to an employee or a worker, means the person by whom the employee or worker is (or, where the employment has ceased, was) employed.

Defined in s.230(4) · see it in the full Act

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act
basic award of compensation for unfair dismissal

“basic award of compensation for unfair dismissal” shall be construed in accordance with section 118,

Defined in s.235(1) · see it in the full Act
employee

(1) In this Act “employee” means an individual who has entered into or works under (or, where the employment has ceased, worked under) a contract of employment.

Defined in s.230(1) · see it in the full Act
employment

(5) In this Act “employment”—

(a)in relation to an employee, means (except for the purposes of section 171) employment under a contract of employment, and

(b)in relation to a worker, means employment under his contract;

Defined in s.230(5) · see it in the full Act

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act

Cases considering section 185 8

Graysons Restaurants Ltd v Jones & Ors

[2019] EWCA Civ 725 · 17 April 2019

Applies the definition of the appropriate date so that, for arrears of pay, the relevant date is when the employer became insolvent. (see para [11])

Mohammed Shazan Chaudhry v Paperchase Products Limited & Anor

[2025] EAT 181 · 10 December 2025Interprets

The court contrasted ordinary arrears of pay, for which the appropriate date is insolvency, with the special rules for protective and basic awards. (see paras [67]-[68]) The court held that the appropriate date for a basic or protective award is the latest of insolvency, termination and the making of the award. This necessarily requires an award before the Secretary of State's payment obligation arises. (see paras [68]-[70]) The court considered, without deciding, that the basic-award element of an arbitral award under a designated dismissal procedures agreement would probably fall within the residual category. That point did not affect the analysis. (see para [69])

Secretary of State of Business Innovation & Skills v Dobrucki & Ors (Transfer of Undertakings: Insolvency)

[2015] UKEAT 0505_13_0302 · 3 February 2015Limits

Section 185's appropriate date was not brought forward by Regulation 8(3). Accordingly, it could not make post-transfer debts payable by the Secretary of State. (see paras [14]; [21])

4 more judgments, and what each says about section 185, are in the case-law panel in the full Act.

Amendments and notes

1 notes from legislation.gov.uk

Marginal citations

  1. M481992 c. 52.