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Claims for Unfair Dismissal – Right of Action Vesting in
Trustee in Bankruptcy?
In the case of Grady –v- Prison Service [11 April 2003] the
Court of Appeal examined whether an employee’s claim for unfair
dismissal had vested by law in her Trustee in Bankruptcy. The Court
of Appeal examined both the provisions of the Insolvency Act and
the Employment Rights Act 1996 and held that the essential nature
of a claim for unfair dismissal was personal, rather than
proprietary. It also held that a claim for reinstatement or
re-engagement consequent on an unfair dismissal claim was not a
thing in action which formed part of the Bankrupt’s Estate, even
though the eventual award (if one was made) might be. Accordingly,
the Bankrupt had the right to pursue the claim in her own name as
it was personal to her and did not vest in her Trustee in
Bankruptcy.