Employment (Amendment) Bill

Where a collective agreement or an award contains a provision for the payment of a gratuity or sum of money to an employee on his retirement or on the termination of his services under such circumstances as may be provided for in the collective agreement or award, such gratuity or sum of money which is due and owing to the employee shall be included among —

the debt which, under section 292 of the Companies Act (Cap. 185), are to be paid in priority to all other unsecured debts in the winding up of a company and such gratuity or sum of money shall rank after the preferred debts referred to in the said section;

the debts which, under section 43 of the Bankruptcy Act (Cap. 18) are to be paid in priority to all other debts in the distribution of the property of a bankrupt or of a person dying insolvent.(2) For the purposes of this section —“award” means an award made by the Industrial Arbitration Court under the provisions of the Industrial Relations Act (Cap. 124);“collective agreement” means a collective agreement, a memorandum of which has been certified by the Industrial Arbitration Court in accordance with the provisions of the Industrial Relations Act.”.