Employment and Industrial Relations Act (Cap. 452), article 20

20. Notwithstanding the provisions of any other law any claim by any employee in respect of a maximum of three months of the current wage payable by the employer to the employee, and compensation for leave to which the employee is entitled, toget her with any compensation due to the employee in consideration of t he termination of employment, or any notice thereof, shall constit ute a privileged claim over the assets of the employer and shall be p aid in preference to all other claims whether privileged or hypothe cary: Provided that, in every case, the maximum amount of the privileged claim shall not exceed the equivalent of the nationa l minimum wage payable at the time of the claim over a period of six months. Guarantee fund.21. (1) There is hereby established a Guarantee Fund (hereinafter referred to as "the Fund") for the purpose of guaranteeing payment of unpaid wages due by an employer to thos e employees whose employment i s terminated because of the employer’s proved insolvency, wh ich fund shall be regulated and administered in such manner as the Minister may prescribe. (2) The Minister may, after consultation with the Minister of 14 CAP. 452.] EMPLOYMENT AND INDUSTRIAL RELATIONS Finance and with the Board, prescribe regulations for the purpo se of giving better effect to the provisions of this article; with out prejudice to the generality of the foregoing, such regulations may establish - (a) t h e m a n n e r i n w h i c h t h e F u n d s h a l l b e s e t u p a n d initially funded and for this purpose the Minister is authorised to endow the fund with such amount and for such period as the Min ister may prescribe; (b) the level of proof required i n order to prove insolvency of the employer; (c) the rate of contribution which the State, employers and employees shall contribute towards the continued funding of the Fund; (d) the manner in which such Fund shall be administered; (e) any class of employment that is precluded from making a claim under the Fund; (f) the manner and the circumstances in which a claim may be made by an employee for payment from the Fund and the manner and the circumstances in which a claim shall be paid to an employee out of the Fund; (g) the maximum amount which can be paid out of the Fund to any single claimant; (h) the right of the Fund to be subrogated into the rights of the employee to whom an amount is paid from the said Fund; as well as the right of the Fund to claim refund o f a n y a m o u n t s s o p a i d , f r o m t h e e m p l o y e r o f t h e employee; (i) the measures and procedures that may be required in order to prevent abuse. (3) The Fund shall have a distinct legal personality and shall b e capable of entering into contracts, of suing and being sued, an d doing all such things and entering into such transactions as ar e incidental or conducive for the fulfilment of its objectives as may be prescribed by the Minister. (4) The Fund shall be empowered to collect, recover and institute proceedings for the payment of sums due to it, in ter ms of the provisions of this Act. (5) The legal and judicial representation of the Fund shall vest in the chairperson or in any othe r person as the Fund may autho rise for this purpose. Employment Agencies Guarantee Fund. Added by: XLIII.2023.3.