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The Committee notes the information provided by the Government concerning the latest legislative amendments to the Labour Code (Act No. 311/2001 Coll.) and Act No. 461/2003 Coll. on social security bearing on the protection of employees’ claims in the event of the employer’s insolvency.

Articles 6 and 7 of the Convention. Wage claims as privileged debts. The Committee notes that Act No. 328/1991 Coll. on bankruptcy and settlement, which previously gave effect to the requirements of Part II of the Convention, has been repealed by Act No. 7/2005 Coll. on bankruptcy and restructuring. The Committee requests the Government to provide detailed particulars on any substantive changes introduced by the new legislation, in particular as regards the coverage and limits of the privileged treatment of workers’ wage claims in bankruptcy proceedings.

Article 3(2) and Part III. Protection by a guarantee institution. The Committee notes that, under sections 102 and 103 of Act No. 461/2003 Coll. on social security, as amended, the guarantee insurance benefit covers a maximum service period of three months or an amount not exceeding three times one-twelfth of the general assessment base applicable on the date on which the employer became insolvent. It also notes that the scope of employment-related claims protected by the guarantee insurance extends beyond the minimum entitlements specified in Article 12 of the Convention. Noting that the Convention appears to be implemented in its entirety both in law and practice, the Committee once again recalls that the Government which at the time of ratification accepted only Part II of the Convention dealing with protection of workers’ claims by means of a privilege may now extend its acceptance to Part III of the Convention dealing with protection through a guarantee institution. The Committee accordingly requests the Government to keep the Office informed of any decision taken or envisaged in this regard.

Part IV of the report form. The Committee notes that, according to the latest statistics available, in 2006 guarantee insurance benefits were paid to 217 beneficiaries representing a total amount of 77.5 million korunas (approximately 2.3 million euros). The Committee would appreciate if the Government could continue to supply detailed information on the operation, financing and management of the guarantee insurance system, including for instance the current rate of the employers’ compulsory contribution, statistics on the number of applications received, claims settled and sums paid per year, etc.

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The Committee notes the Government’s report, including the indications concerning the latest legislative amendments affecting the application of the Convention. It notes in particular that under the revised section 23(1) of the Labour Code (Act No. 311/2001, as amended by Act No. 210/2003), an employer, preliminary bankruptcy trustee or bankruptcy trustee is obliged to inform the employees’ representatives, and in the absence of any such representatives, the employees directly in writing on his/her state of insolvency within five days from its onset. In fact, this provision reflects Paragraph 11 of the Protection of Workers’ Claims (Employer’s Insolvency) Recommendation, 1992 (No. 180), which suggests that workers or their representatives should receive timely information with regard to insolvency proceedings that have been opened and to which the workers’ claims pertain. The Committee also notes that with respect to the monetary limit of the financial compensation which may be granted by the wage guarantee fund, in accordance with section 22(5) of the Labour Code, the average monthly wage for the first half of 2003 amounted to 13,400 SKK.

Noting that the provisions of Part III of the Convention dealing with the protection of workers’ claims by a guarantee institution appear to be fully applied in national law and practice, and also recalling the Government’s earlier statement that it intends to extend eventually its acceptance to Part III, the Committee once again invites the Government to give favourable consideration to the possibility afforded by Article 3, paragraph 2, of the Convention and accept the obligations of both Parts. In the meantime, the Committee would appreciate if the Government could continue to supply, as required under Part IV of the report form, detailed information on the practical application of the Convention, including for instance available statistics on the number of bankruptcies and the amount of unpaid wages recovered through judicial proceedings in accordance with existing bankruptcy laws and regulations, but also full particulars on the operation, financing and management of the guarantee fund, particularly as regards the number of applications received, the proportion of claims settled and the sums of wage debts paid since its establishment.

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The Committee notes the detailed information provided by the Government in its report, in particular the adoption of the new Labour Code (Act No. 311/2001) and the various legislative amendments introduced in the laws on employment (Act No. 387/1996) and bankruptcy (Act No. 328/1991) since the submission of the first report on the application of the Convention.

The Committee notes that, under section 22(2) of the new Labour Code, the scope of employees’ claims covered by the guarantee fund extends beyond the minimum requirements set out in Article 12 of the Convention and includes not only claims in respect of unpaid wages, holiday pay, sick leave and severance pay, but also termination benefits, compensation for unfair dismissal, travel expenses, compensation for occupational accidents or diseases and court expenses. It also notes that section 22(4) and (5) of the Labour Code provides for new higher time and monetary limits on protected claims since guarantee entitlements now cover up to three months’ wages for the last 18 months of the employment relationship prior to the insolvency, or an amount not exceeding three times the average national monthly wage. The Committee further notes that, according to the bankruptcy legislation currently in force, wage and other service-related claims not settled by the guarantee fund, and arising from employment contracts in the last three years prior to the issue of the bankruptcy order, remain privileged debts of the first category and are satisfied before taxes and social security charges. Moreover, the Committee notes with interest that the Government reiterates in its report its earlier statement to the effect that it considers extending its acceptance to Part III of the Convention concerning the protection of workers’ claims by a guarantee institution, in conformity with Article 3, paragraph 2 of the Convention. The Committee asks the Government to keep it informed of any decision taken in this respect.

Finally, the Committee would be grateful to the Government for information on the application in practice of the Convention in accordance with Part IV of the report form, especially with regard to the functioning of the guarantee fund, including for instance information on its financial situation and management, available statistics on the number of applications received, claims settled and amounts advanced per year, and the average rate of recovery of the amounts paid to beneficiaries.

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The Committee notes with interest the information communicated by the Government in its first report and requests it to supply details on the following points.

Article 3(2) of the Convention. The Committee notes with interest that Act No. 297/1999 amending and supplementing the Labour Code, in force since 1 December 1999, and Act No. 292/1999 amending and supplementing Act No. 387/1996 on Employment, in force since 1 July 2000, provide for protection of workers’ claims by a special guarantee fund for cases where the privilege given to workers does not allow them to recover the amounts owed to them from the employer because of his insolvency. The Committee also notes the Government’s statement that it envisages extending its acceptance, in the light of these Acts, to Part III of the Convention concerning the protection of workers’ claims by a guarantee institution. The Committee therefore asks the Government to inform the International Labour Office in its future reports of any initiative to this end.

Article 6. The Committee notes that the Government refers to section 31(3) of Act No. 328/1991 of 11 July 1991 on bankruptcy and the concordat indicating the list of workers’ claims which are protected by a privilege in the event of their employer’s insolvency. The Committee observes, however, that no such list appears in the text of section 31 of the Act available at the Office, of which a copy was also supplied by the Government. The Committee would therefore be grateful if the Government would supply a copy of the legislation or regulations containing the list of claims to which the privilege relates.

Article 7(1). The Committee notes, according to section 66(h) of Act No. 328/1991 to which the Government refers in its report, that claims of managers which occurred after the bankruptcy declaration may be satisfied during the bankruptcy procedure at any time only up to the amount of 10,000SKK monthly. The text of the abovementioned Act available at the ILO does not include this provision and the Government is therefore requested to specify the legislation or regulation containing the provision in question and to supply a copy. The Committee requests the Government to indicate whether there exist provisions indicating that the amount to which the extent of privilege of workers’ claims may be limited must not be lower than a socially acceptable level in accordance with the provisions of the Convention in this regard.

Article 7(2). The Committee requests the Government to indicate whether the amount to which the privilege of the claims of certain employees is limited, for example, the managers by virtue of section 66(h) of Act No. 328/1991 mentioned above, is adjusted as necessary so as to maintain its value in accordance with this provision of the Convention.

Parts III and IV of the report form. The Committee requests the Government to indicate whether courts of law or other tribunals have given decisions involving questions of principle relating to the application of the Convention and, if so, to supply the texts of these decisions. It also asks the Government to provide detailed information as to the manner in which the Convention is applied in practice, including information concerning the number of workers covered by measures giving effect to the Convention.