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Corporate failure exposes employees to the possible loss of sums due as deferred benefits such as arise from annual leave entitlements. Through such deferred benefits, employees are significant, often involuntary, providers of working capital to their employer. They are not necessarily adequately compensated for the risk involved, nor able to influence corporate governance in the ways available to other creditors. These issues have been largely neglected in the debate to date, and they provide the focus for an evaluation of alternative policies which have been proposed (or implemented) for protecting employee entitlements.

Research into the origins of zero-based budgeting is presented. Possible explanations for the emergence of zero-based budgeting in the pre-1920 period are discussed.