One would expect that employers should, from a moral perspective, firstly look after employees in the event of insolvency as employees are usually wholly financially dependent on their employers. That is not the case. Bankruptcy and company legislation do give preferential status to certain employee claims in the distribution of the assets of the insolvent company or the bankrupt. However, as preferential creditors, specified employee debts are only given priority in the distribution of assets after the payment of secured creditors (usually banks) and the costs and expenses of the liquidation/bankruptcy. While this gives employees a certain level of protection, it only does so in circumstances where the insolvent company/employer has sufficient assets to discharge the monies owing after payment of secured debts and the liquidator’s costs and expenses. In the current climate, it is generally the case that there are insufficient assets to pay the preferential debts in full and so the employee’s claims will be reduced proportionately. In any event, an employee’s claim for arrears of wages is limited to €3,174.00 under the legislation. Ultimately, an employee might only receive part of their pay related entitlements from an insolvent employer.