Thursday, July 7, 2016

Employment Law - Can a Bankrupt make a Claim at the Labour Dept.

Can an aggrieved employee who is declared a bankrupt file a complaint at the Labour Dept, in the event his employer refuses to pay overtime on rest days, or Public Holidays or compensation in the event termination and/or lay-off benefit. But lately, a question as arisen as to whether an employee who is a 'Bankrupt' as a right to make a claim in the absence of Sanction from the Insolvency Department pursuant to Section 38(1)(a) of the Insolvency Act 1967. In a Labour Court hearing,the counsels representing the employer made a preliminary objection during the course of the hearing that the Complainant has no legal bearing to proceed with his case as the Complainant did not obtain a Sanction pursuant to Section 38(1)(a) of the Insolvency Act 1967, hence the counsels applied to the Labour Court to be strike-off the case, and, if proceeded further this would tantamount to a contempt of court, in support of their argument they submitted an Authority from Court of Appeal. However, the presiding officer seek further advice with her superior and informed the parties that she would not strike-off the case rather fixed date for mention and in the mean time the Complainant suppose to secure the Sanction from Insolvency Dept. An application was made to the Insolvency Dept and subsequently a letter was issued which states that the complainant can proceed with his case since it involves wages therefore a sanction under section 38(1)(a) is not necessary. The above experience now confirms that even a bankrupt can make an application under Section 69 of the Employment Act 1955. however, to be on the save side it is better to get the Sanction from the Insolvency Department. Union activist must be adequately equipped with such information to assist them in their trade union work. Surprisingly, the above case is represented by to senior lawyers for the employer, and their intention is to strike-off the case because there is no Sanction pursuant to Section 38(1)(a) Insolvency Act 1967. As a laymen and not being trained as a lawyer, one should not shy away or being intimidated by their oratory defense or threat, as a trade unionist lean to be patience and put forward your disagreement in a most decent manner and avoid rhetoric statements, this may cause distraction during the debate and, they has trained lawyers would like to provoke you and cause agitation to defeat whatever arguments you put put forward. Anyway, the above labour case is still pending at the Labour Department and looking forward to a fruitful conclusion. Hope to succeed this case.

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