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WEDNESDAY, JANUARY 19, 1977
BETTER PROTECTION FOR WORKERS PROPOSED
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THREE BILLS DESIGNED TO GIVE WORKERS BETTER PROTECTION IN THE EVENT OF BANKRUPTCY OF AN EMPLOYER OR LIQUIDATION OF A COMPANY WERE INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
THEY ARE THE COMPANIES (AMENDMENT) BILL 1977, THE BANKRUPTCY (AMENDMENT) BILL 1977, AND THE WORKMEN'S COMPENSATION (AMENDMENT) BILL 1977.
MOVING THE MOTION FOR THE SECOND READING OF THE THREE BILLS, THE COMMISSIONER FOR LABOUR, MR. IAN PRICE, SAID THE PURPOSE OF THE FIRST BILL WAS TO AMEND THE COMPANIES ORDINANCE IN THREE WAYS THE FIRST BEING TO INCORPORATE INTO THE ORDINANCE THE EXISTING PROVISIONS CONTAINED IN THE WORKMEN'S COMPENSATION ORDINANCE- THE SECOND BEING TO INCLUDE PAYMENT OF WAGES IN LIEU OF NOTICE (PROVIDED UNDER THE EMPLOYMENT ORDINANCE) INTO THE LIST OF DEBTS WHICH HAVE STATUTORY PRIORITY OVER OTHER DEBTS IN THE EVENT OF LIQUIDATION OF A COMPANY AND THE THIRD BEING TO RAISE THE LIMIT OF PRIORITY DEBTS FOR SALARY, WAGES AND SEVERANCE PAYMENTS TO $8,000 FOR ANY ONE CREDITOR.
THE SECOND BILL, SAID MR. PRICE, WAS TO AMEND IN THE SAME MANNER THE BANKRUPTCY ORDINANCE DEALING WITH THE DISTRIBUTION OF PROPERTY OF A BANKRUPT EMPLOYER WHILE THE THIRD WAS TO REPEAL THE PRESENT PROVISIONS ON PRIORITY PAYMENT FOR WORKMEN'S COMPENSATION IN THE WORKMEN'S COMPENSATION ORDINANCE BECAUSE IT WAS CONSIDERED MORE APPROPRIATE TO HAVE THESE EMBODIED IN THE COMPANIES ORDINANCE AND THE BANKRUPTCY ORDINANCE,
EXPLAINING THE PROPOSAL TO INCLUDE PAYMENT OF WAGES IN LIEU OF NOTICE INTO THE LIST OF DEBTS WHICH HAD PRIORITY, MR. PRICE SAID: THIS CHANGE IS SUGGESTED BECAUSE THE EMPLOYMENT ORDINANCE PLACES A LEGAL OBLIGATION ON AN EMPLOYER TO PAY WAGES IN LIEU OF NOTICE TO AN EMPLOYEE ON TERMINATION OF A CONTRACT OF EMPLOYMENT WITHOUT NOTICE.
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+HOWEVER, + HE SAID, IN THE EVENT OF THE WINDING UP OF A COMPANY WAGES IN LIEU OF NOTICE, THOUGH A STATUTORY RIGHT, ARE PRESENTLY RANKED ONLY AS ORDINARY DEBTS.
+ IN A NUMBER OF CASES, THIS HAS MEANT THAT A DISMISSED WORKER HAS BEEN DEPRIVED OF FINANCIAL ASSISTANCE IN THE FORM OF WAGES IN LIEU OF NOTICE AND THIS IS PARTICULARLY UNFAIR WHERE THE AMOUNT OF WAGES, WHICH RANKED FOR PRIORITY, WAS SMALL OR WHERE THE EMPLOYEE DID NOT QUALIFY FOR SEVERANCE PAY UNDER THE EMPLOYMENT ORDINANCE,
+ IT IS CONSIDERED THAT TO INCLUDE WAGES IN LIEU OF NOTICE AMONGST PRIORITY CLAIMS IN THE EVENT OF INSOLVENCY, WOULD GREATLY FACILITATE THE SOLVING OF CERTAIN TYPES OF DISPUTES, WOULD TAKE MUCH OF THE HEAT OUT OF THEM, AND INDEED MIGHT PREVENT SOME DISPUTE FROM ARISING, + MR. PRICE ADDED.
/+WITH
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