Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

The Committee notes the Government’s brief report and requests additional information on the following points.

Article 1, paragraphs 1 and 2, of the Convention. Definition of the term “insolvency”. The Committee notes that, in its report, the Government confines itself to indicating that the term “insolvency” refers to the bankruptcy of the enterprise and the inability of the employer to pay its debts in respect of its workers, without referring to a legal text. The Committee requests the Government to specify whether the term “insolvency” is defined legally and, if so, to provide a copy of the relevant text.

Article 1, paragraph 3. Employer’s assets. The Committee notes that section 268 of the Labour Code only provides that wage claims enjoy preferential treatment over the employer’s movable and immovable property, without giving any other details. The Committee requests the Government to indicate the scope of the employer’s responsibility in the event of insolvency (for example whether or not responsibility extends to his or her personal goods, whether certain goods may not be seized, etc.).

Article 2. Method of application of the Convention. The Committee requests the Government to indicate whether, in addition to the Labour Code, other legislative texts, such as the Bankruptcy Act or the Companies Act, contain provisions relating to the application of the Convention and, if so, to provide a copy of these texts.

Article 6. Protected claims. The Committee notes that the Labour Code does not specify the number of months for which wages are protected by a privilege, nor whether claims for holiday pay, other types of paid absence or severance pay also benefit from a privilege, as prescribed by this provision of the Convention. The Committee requests the Government to provide further information on the nature of the wage claims protected by a privilege.

Article 7. Limitations. The Committee notes that, under section 268 of the Labour Code, wage claims enjoy preferential treatment over the employer’s movable and immovable assets, with the only limitation being the five-year time limit provided for by section 270 of the Labour Code. The Committee requests the Government to specify whether the extent of the privilege of workers’ claims is also limited to a prescribed amount and, if so, to provide any useful information on this subject.

Part IV of the report form. The Committee requests the Government to provide general information on the application of the Convention in practice, including information on the number of bankruptcy or insolvency proceedings initiated per year and the total amount of the wage claims recovered by means of a privilege in these cases.