Krasner v McMath [2005] EWCA Civ 1072 (also, Re Huddersfield Fine Worsteds Ltd) is a UK labour and insolvency law case concerning the priority of payments to workers of an insolvent company in priority to other creditors.

Barry McMath was one of the employees claiming that his right to compensation for the employer’s failure to consult the workforce about redundancies was payable in priority to the expenses of administration.

Neuberger LJ held that protective payments under TULRCA 1992 s 189 are not payable in priority to administration expenses.

He noted that if a broad interpretation to ‘wages and salary’ is given under then it could hurt the purpose of rescuing insolvent companies, which was inspired by the Cork Report and underpinned the Insolvency Act 1986.

In particular, many administrators would not decide that a rescue is possible if they know damages for failure to consult the workers who are retained and have their contracts adopted get super-priority for more than the work they do.