4.1 Category 1: Contributions to pension schemes and end-of-service gratuities

An amount owed by a Company is a Preferential Debt of the Company if it is:

• (a) a contribution payable to a pension scheme for an individual who is or has been an employee of the Company; or
• (b) an end-of-service gratuity payable on the termination of the employment of an individual who is or has been an employee of the Company.

4.2 Category 2: Remuneration, payment in lieu of notice etc.

4.2.1 An amount owed by a Company is a Preferential Debt of the Company if it:

• (a) is payable by the Company to an individual who is or has been an employee of the Company; and
• (b) is payable by way of:

(i) remuneration in relation to the whole or any part of the period of 4 months immediately before the Relevant Date; or

(ii) payment in lieu of notice on the termination of the individual’s employment, whether before, on or after the Relevant Date; or

(iii) compensation in lieu of vacation leave accrued in relation to any period of employment before the Relevant Date that is payable on the termination of the individual’s employment, whether before, on or after the Relevant Date; and

• (c) does not exceed the amount (if any) prescribed by the Rules.

4.2.2 An amount owed by a Company is a Preferential Debt of the Company if it is owed in relation to money advanced for the purpose of the payment of a debt which, if it had not been paid, would have been a Preferential Debt under subrule 4.2.1.

4.2.3 An amount owed by a Company is a Preferential Debt of the Company if it:

• (a) is ordered (whether before or after the Relevant Date) to be paid by the Company under the AIFC Employment Regulations; and
• (b) is ordered to be paid in relation to a default made by the Company before the Relevant Date in the discharge of the Company’s obligations under the AIFC Employment Regulations; and
• (c) does not exceed the amount (if any) prescribed by the Rules.

4.3 Interpretation for Category 2 Preferential Debts

4.3.1 For rule 4.2.1(b)(i), an amount is payable by a Company by way of remuneration in relation to any period if:

1. (a) it is paid as wages or salary (whether payable for time or for piece work or earned completely or partly by way of commission) in relation to work done or services provided to the Company in that period; or
2. (b) it is an amount required to be paid by the Company under the AIFC Employment Regulations and it is payable by the Company in relation to that period.

4.3.2 Subrule 4.3.3 applies to an individual in relation to a Company if the individual’s employment by the Company has been terminated by or in consequence of the Company Going into Liquidation or a Receiver being appointed for the Company under section 14 (Appointment and Functions of Receivers and Administrative Receivers) of AIFC Insolvency Regulations.

4.3.3 If this subrule applies, compensation in lieu of vacation leave is taken, for rule 4.2.1(b)(iii), to have accrued to the individual in relation to a period of employment if, because of the individual’s contract of employment or any AIFC Act (including any instrument under an AIFC Act), that compensation would have accrued in relation to that period if the employment had continued until the individual became entitled to be allowed the vacation.

4.3.4 For this rule, any compensation paid or payable by a Company to an individual in relation to a period of vacation leave, or a period of absence from work due to sickness or other good cause, is taken to be wages or salary paid or payable by the Company to the individual in relation to work done or services provided to the Company in that period.

4.3.5 For this rule, a reference to compensation paid or payable by a Company to an individual in relation to a period of vacation leave includes a reference to any amount that, if it had been paid, would have been treated for the purposes of the acting law of the Republic of Kazakhstan relating to social expenditures as earnings (however described) in relation to that period. Note: For subrule 4.3.5, the relevant Law of the Republic of Kazakhstan at the commencement of these Rules was the Law On Compulsory Social Insurance dated 25 April 2003.