Bankruptcy (Desastre) (Jersey) Order 2006: Amendment: Law drafting instructions

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 16 October 2023:

Decision Reference: MD-CM-2023-657		Public
Subject: Drafting Instructions: amendment to Bankruptcy (Désastre) (Jersey) Order 2006
Report Title: Drafting Instructions: amendment to Bankruptcy (Désastre) (Jersey) Order 2006 to increase the prescribed limits for certain priority claims.		Public
Decision(s): The Assistant Chief Minister has decided to increase the prescribed limits for certain priority claims, namely (a) wages and salary and (b) holiday pay and bonuses under Article 32 of the Bankruptcy Désastre) (Jersey) Law 1990, by application of the Retail Price Index to the relevant figures.
Reason for Decision(s): Article 32 of the Law sets out how any proceeds realised as a result of the désastre process are to be distributed. In particular, once the Viscount’s fees have been paid, priority is given, amongst certain other items, to claims by an employee of a bankrupt, for (a) arrears of wages and salary in the six month period immediately preceding the declaration; and (b) holiday pay and bonuses. This means that these claims will be paid first and in full (if sufficient funds are available) before any other debts are considered. The sum to which priority is given may not exceed the prescribed amount as set out under Article 5(a) and (b) of the Order. The current limits are (a) £4,800 for wages and salary; and £1,375 for holiday pay and bonuses. The limits were last increased in 2018. Since then, inflation has increased which results in new figures of £6,309.95 and £1,807.54. It is important to keep this figure up to date so that employees have some level of protection (so far as is possible in an insolvency situation). The recommendation from the Viscount is therefore to increase the amounts to: Article 5(a) £6,300 Article 5(b) £1,800
Resource Implications: There are no new financial and/or manpower implications arising from this Ministerial Decision.
Action Required: Principal Legislative Drafter to be requested to draft legislation.
Signature:	Signed By: Deputy Elaine Millar
Date Signed:	Date of Decision (If different from Date Signed):