Part A1 insolvency act moratorium – impact on employees and pensions

David Pollard has written an article on “Insolvency Act 1986 – The New Part A1 Moratorium: Impact on Employees and Pensions” [2025] Journal of Business Law p192

This article focuses on the impact on employees or pensions where a company enters a moratorium under Part A1 of the Insolvency Act 1986 (inserted from June 2020 by CIGA 2020).

It starts by giving a general overview of the Part A1 moratorium process , including the impact on most pre-moratorium debts (PMDs).

It then looks at the implications for employment and pensions issues including:

• the impact on payment of employee wages;
• the impact on payment of pension contributions
• if there is a later relevant insolvency process over the company, whether a potential “super-super-priority” can apply in that insolvency to some claims (mainly unpaid financial contracts). These rank ahead even of claims of adopted employees.

The article was first published in issue 3 of 2025 of the Journal of Business Law.

Read the full article