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 of termination and/or lay-off benefit.

But lately, a question as arisen as to whether an employee who is a 'Bankrupt' has 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, counsels representing the employer made a preliminary objection during the course of the hearing that the Complainant who is declared a bankrupt 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 a new date for mention and in the mean time the Complainant is suppose to secure the Sanction from Insolvency Dept.

 An application was made to the Insolvency Dept, 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 to claim monitory benefits. 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 we must lean to be patience and put forward your disagreement in a most decent manner, avoid rhetoric statements which may cause distress on our part, and  this may cause distraction during the debate,  they has trained lawyers would like to provoke you and take advantage and cause agitation to defeat whatever arguments we 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.