Employment Rights Act 1996, section 186

Limit on amount payable under section 182

Part XII Insolvency of employers

(1)The total amount payable to an employee in respect of any debt to which this Part applies, where the amount of the debt is referable to a period of time, shall not exceed—

(a)[F919 £751F919] in respect of any one week, or

(b)in respect of a shorter period, an amount bearing the same proportion to [F920£751F920] as that shorter period bears to a week.

F921 (2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Definitions used in section 186 2

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
week

“week”—

(a)

in Chapter I of this Part means a week ending with Saturday, and

(b)

otherwise, except in sections 27C, 75F, 75H, 80A, 80B , 80EA , 80EF , 80J and 86 and paragraph 11 of Schedule A1 , means, in relation to an employee whose remuneration is calculated weekly by a week ending with a day other than Saturday, a week ending with that other day and, in relation to any other employee, a week ending with Saturday.

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

Cases considering section 186 4

Graysons Restaurants Ltd v Jones & Ors

[2019] EWCA Civ 725 · 17 April 2019

Confirms that any liability to pay equal pay arrears remains subject to the statutory maximum period and weekly payment limit. (see paras [6]; [34])

3 more judgments, and what each says about section 186, are in the case-law panel in the full Act.

Amendments and notes

4 notes from legislation.gov.uk

Amendments

  1. F919Sum in s. 186(1)(a) substituted (6.4.2026) by The Employment Rights (Increase of Limits) Order 2026 (S.I. 2026/310), art. 1(2), Sch. (with art. 4)
  2. F920Sum in s. 186(1)(b) substituted (6.4.2026) by The Employment Rights (Increase of Limits) Order 2026 (S.I. 2026/310), art. 1(2), Sch. (with art. 4)
  3. F921S. 186(2) repealed (17.12.1999) by 1999 c. 26, ss. 36(1)(3), 44, Sch. 9(10); S.I. 1999/3374, art. 2(b)(c), Sch.

Modifications

  1. C185S. 186(1)(a)(b): power to amend conferred (17.12.1999) by 1999 c. 26, s. 34(1)(d); S.I. 1999/3374, art. 2(a)