PRIORITY OF MAKING CLAIMS FOR WAGES
IN LIEU OF NOTICE ******
THREE BILLS WHICH WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL SHORTLY WERE PUBLISHED IN THE GOVERNMENT GAZETTE TODAY FOR PUBLIC INFORMATION.
THEY ARE THE COMPANIES (AMENDMENT) BILL 1977, THE BANKRUPTCY (AMENDMENT) BILL 1977, AND THE WORKMEN'S COMPENSATION (AMENDMENT) BILL 1977.
ACCORDING TO A LABOUR DEPARTMENT SPOKESMAN, THE FIRST TWO BILLS PROPOSE TO MAKE CLAIMS FOR WAGES IN LIEU OF NOTICE RANK EQUAL IN PRIORITY WITH THE PAYMENT OF WAGES AND SALARY, STATUTORY CROWN DEBTS AND SEVERANCE PAY IN THE EVENT OF LIQUIDATION OF A COMPANY OR BANKRUPTCY OF A BUSINESS. THE CEILING FOR CLAIMS FOR WAGES IN LIEU OF NOTICE IS TO BE SET AT $2,000, THE PRESENT MONTHLY WAGE CEILING FOR NON-MANUAL EMPLOYEES COVERED BY THE EMPLOYMENTS ORDINANCE.
THE TWO BILLS ALSO PROPOSE TO INCREASE THE MAXIMUM LIMIT FOR PRIORITY PAYMENT OF WAGES AND SALARY OR SEVERANCE PAY FOR AN EMPLOYEE FROM THE PRESENT CEILING OF $6,000 TO $8,000 AND TO INCORPORATE INTO THE BANKRUPTCY AND COMPANIES ORDINANCES THE EXISTING PROVISIONS CONTAINED IN THE WORKMEN'S COMPENSATION ORDINANCE CONCERNING PRIORITY PAYMENT FOR WORKMEN'S COMPENSATION.
EXPLAINING THE MOVE TO INCREASE THE MAXIMUM AMOUNT OF WAGES AND SALARY OR SEVERANCE PAY WHICH CAN BE CLAIMED IN PRIORITY, THE SPOKESMAN SAID: +THIS IS TO CORRESPOND WITH THE EMPLOYMENT ORDINANCE WHICH WAS AMENDED IN APRIL 1974 TO RAISE THE MONTHLY WAGE CEILING FOR NON-MANUAL EMPLOYEES FROM $1,500 TO $2,000.
+SINCE BOTH THE BANKRUPTCY AND COMPANIES ORDINANCES LIMIT THE AMOUNT OF WAGES AND SALARY WHICH MAY BE CLAIMED IN PRIORITY TO FOUR MONTHS BEFORE THE DATE OF THE WINDING UP ORDER, THE NEW LIMIT OF $8,000 IS EQUIVALENT TO FOUR MONTHS' PAY AT $2,000 A MONTH.+
REFERRING BACK TO THE PAYMENT OF WAGES IN LIEU OF NOTICE, THE SPOKESMAN POINTED OUT THAT THE OBJECTIVE WAS TO PROVIDE THE DISMISSED WORKER WITH FINANCIAL ASSISTANCE FOR A PERIOD IN THE EVENT OF BANKRUPTCY OR LIQUIDATION OF HIS EMPLOYER'S FIRM SO THAT HE MAY BE ABLE TO MAINTAIN HIMSELF AND HIS FAMILY WHILE SEEKING NEW EMPLOYMENT.
+UNDER THE PRESENT ARRANGEMENTS, AN EMPLOYEE CANNOT CLAIM WAGES IN LIEU OF NOTICE IN PRIORITY TO OTHER DEBTS, AND THEREFORE THE WORKER MAY SUFFER HARDSHIP WHEN HIS EMPLOYMENT IS SUDDENLY TERMINATED AS A RESULT OF THE FINANCIAL INSOLVENCY OF HIS EMPLOYER.
+ IN ADDITION, THE AMOUNT OF WAGES OWED MAY BE SMALL AND ONLY SUFFICIENT TO SUPPORT HIM FOR A VERY SHORT PERIOD IF HE DOES NOT QUALIFY FOR SEVERANCE PAY UNDER THE EMPLOYMENT ORDINANCE, THE SPOKESMAN ADDED.
WITH REGARD TO THE THIRD BILL, THE WORKMEN'S COMPENSATION (AMENDMENT) BILL 1977, IT MERELY PROPOSES TO REPEAL ITS PRESENT PROVISIONS ON PRIORITY PAYMENT FOR WORKMEN'S COMPENSATION SINCE THESE ARE NOW BEING INCORPORATED INTO THE COMPANIES ORDINANCE AND BANKRUPTCY ORDINANCE.
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