CMNT_TITLE

Protection of Wages Convention, 1949 (No. 95) - Republic of Moldova (RATIFICATION: 1996)

Other comments on C095

Observation

Direct Request

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Article 11 of the Convention. Wages as privileged debts in bankruptcy proceedings. In its previous comments, the Committee had requested the Government to clarify whether under Insolvency Act No. 623-XV of 14 November 2001, the workers’ wage claims which are granted privileged protection are subject to any time or monetary limitation. It had also invited the Government to submit any comments in response to the observations of the union of the SA “Glodeni-Zahar” regarding the risk that workers remain unpaid at the end of the distribution of liquidated assets. The Committee notes the adoption of a new Insolvency Act on 29 June 2012 (Act No. 149), which entered into force on 14 March 2013. According to the Government, the present debt payment scheme and sections 43 and 50 of Insolvency Act No. 149 are in line with the requirements of the Convention. The Committee notes, however, that according to these sections, employees are treated as unsecured creditors. In this respect, it recalls that, according to Article 11 of the Convention, in the event of the bankruptcy or judicial liquidation of an undertaking, the workers employed therein should be treated as privileged creditors either as regards wages due to them for service rendered during such a period prior to the bankruptcy or judicial liquidation as could be prescribed by national laws or regulations, or as regards wages up to a prescribed amount as could be determined by national laws or regulations. The Committee further notes the Government’s indication that the Ministry of Labour, Social Protection and Family of the Republic of Moldova prepared draft amendments of the Insolvency Act, which provide that employees’ wage claims are ranked higher by giving them a secured priority status. The Committee requests the Government to keep it informed of any further developments regarding the draft amendments of the Insolvency Act.