§ 16 — Priority of specified debts relating to platform workers in winding up of platform operator

16.—(1) This section applies in relation to a winding up of a platform operator that is a company under the Insolvency, Restructuring and Dissolution Act 2018.(2) The following must be paid in priority over all unsecured debts of the platform operator other than the preferential debts specified in section 203(1)(a) to (h) of the Insolvency, Restructuring and Dissolution Act 2018, and rank in priority after the debts specified in section 203(1)(h) but before those specified in section 203(1)(i) of that Act:(a)

first, all earnings payable to a platform worker, including any amount payable by way of reimbursement under any platform work agreement or any award or agreement regulating the conditions under which any platform worker provides a platform service for the platform operator;

(b)

second, all amounts due in respect of any work injury compensation payable to or for the benefit of a platform worker under the Work Injury Compensation Act 2019 accrued before, on or after the commencement of the winding up;

(c)

third, all amounts due in respect of contributions payable, during a period of 12 consecutive months commencing not earlier than 12 months before and ending not later than 12 months after the commencement of the winding up, by the platform operator, under any written law relating to platform workers’ superannuation or provident funds.

(3) The amount payable under subsection (2)(a) must not exceed any amount that may be prescribed by the Minister by order in the Gazette.

(4) The debts in each class specified in subsection (2) rank in the order specified in that subsection but debts of the same class rank equally between themselves, and are to be paid in full, unless the property of the platform operator is insufficient to meet them, in which case the debts of the same class abate in equal proportions between themselves.

(5) Where any payment has been made to any platform worker of the platform operator on account of earnings out of money advanced by a person for that purpose, the person by whom the money was advanced, in a winding up —(a)

has a right of priority in respect of the money so advanced and paid, up to the amount by which the sum in respect of which the platform worker would have been entitled to priority in the winding up has been diminished by reason of the payment; and

(b)

has the same right of priority in respect of that amount as the platform worker would have had if the payment had not been made.

(6) So far as the assets of the platform operator available for payment of general creditors are insufficient to meet any preferential debts specified in —(a)

section 203(1)(a), (b), (c), (d), (e), (g) and (h) of the Insolvency, Restructuring and Dissolution Act 2018;

(b)

subsection (2)(a) and (c); and

(c)

any amount payable in priority by virtue of subsection (5) or section 203(5) of the Insolvency, Restructuring and Dissolution Act 2018,

those debts —

(d)

have priority over the claims of the holders of debentures under any floating charge created by the platform operator (which charge, as created, was a floating charge); and

(e)

must be paid accordingly out of any property comprised in or subject to that charge.

(7) Despite anything in subsection (2), paragraph (b) of that subsection does not apply in relation to the winding up of a platform operator that is a company in any case where —(a)

the company is being wound up voluntarily merely for the purpose of reconstruction or amalgamation with another company, and the right to the compensation has on the reconstruction or amalgamation been preserved to the person entitled to that right; or

(b)

the platform operator has entered into a contract with an insurer in respect of any liability under any law relating to work injury compensation.

—(1) This section applies in relation to a winding up of a platform operator that is a company under the Insolvency, Restructuring and Dissolution Act 2018.

(2) The following must be paid in priority over all unsecured debts of the platform operator other than the preferential debts specified in section 203(1)(a) to (h) of the Insolvency, Restructuring and Dissolution Act 2018, and rank in priority after the debts specified in section 203(1)(h) but before those specified in section 203(1)(i) of that Act:(a)

first, all earnings payable to a platform worker, including any amount payable by way of reimbursement under any platform work agreement or any award or agreement regulating the conditions under which any platform worker provides a platform service for the platform operator;

(b)

second, all amounts due in respect of any work injury compensation payable to or for the benefit of a platform worker under the Work Injury Compensation Act 2019 accrued before, on or after the commencement of the winding up;

(c)

third, all amounts due in respect of contributions payable, during a period of 12 consecutive months commencing not earlier than 12 months before and ending not later than 12 months after the commencement of the winding up, by the platform operator, under any written law relating to platform workers’ superannuation or provident funds.

(3) The amount payable under subsection (2)(a) must not exceed any amount that may be prescribed by the Minister by order in the Gazette.

(4) The debts in each class specified in subsection (2) rank in the order specified in that subsection but debts of the same class rank equally between themselves, and are to be paid in full, unless the property of the platform operator is insufficient to meet them, in which case the debts of the same class abate in equal proportions between themselves.

(5) Where any payment has been made to any platform worker of the platform operator on account of earnings out of money advanced by a person for that purpose, the person by whom the money was advanced, in a winding up —(a)

has a right of priority in respect of the money so advanced and paid, up to the amount by which the sum in respect of which the platform worker would have been entitled to priority in the winding up has been diminished by reason of the payment; and

(b)

has the same right of priority in respect of that amount as the platform worker would have had if the payment had not been made.

(6) So far as the assets of the platform operator available for payment of general creditors are insufficient to meet any preferential debts specified in —(a)

section 203(1)(a), (b), (c), (d), (e), (g) and (h) of the Insolvency, Restructuring and Dissolution Act 2018;

(b)

subsection (2)(a) and (c); and

(c)

any amount payable in priority by virtue of subsection (5) or section 203(5) of the Insolvency, Restructuring and Dissolution Act 2018,

those debts —

(d)

have priority over the claims of the holders of debentures under any floating charge created by the platform operator (which charge, as created, was a floating charge); and

(e)

must be paid accordingly out of any property comprised in or subject to that charge.

(7) Despite anything in subsection (2), paragraph (b) of that subsection does not apply in relation to the winding up of a platform operator that is a company in any case where —(a)

the company is being wound up voluntarily merely for the purpose of reconstruction or amalgamation with another company, and the right to the compensation has on the reconstruction or amalgamation been preserved to the person entitled to that right; or

(b)

the platform operator has entered into a contract with an insurer in respect of any liability under any law relating to work injury compensation.