CMNT_TITLE

Repetition

Article 6 of the Convention. Protected claims. The Committee notes that following the adoption of the Employment (Amendment) Act 2003, new section 92A grants preferential treatment to workers’ claims in respect of wages, holiday pay, paid absence, and severance pay in terms which are in conformity with the requirements of this Article of the Convention. The Committee understands that workers’ claims continue to rank fourth among privileged debts, i.e. after funeral expenses, estate administration costs and costs of any execution against the estate but before income tax claims, as set out in section 85 of the Insolvency Act (Cap 42:02). The Committee further notes the Government’s explanations that section 85 of the Insolvency Act has been superseded by new section 92A of the Employment Act and is therefore no longer applicable. The Committee considers that, for the sake of legal certainty and clarity, section 85 of the Insolvency Act should be amended to follow the relevant provisions of the Employment Act and also that the Employment Act should contain an indication, or possibly a cross reference to the Insolvency Act, as regards the rank of the privilege granted to workers’ wage claims. The Committee trusts that the Government will consider the need to take appropriate action in the light of the above observations.

Part IV of the report form. Practical application. The Committee would be grateful if the Government would provide in its next report detailed information on the practical application of the Convention, including for instance any available statistics on the number of bankruptcies and the amount of unpaid wages recovered through judicial proceedings in accordance with relevant laws and regulations.