Priority Given to Owed Employees' Wages during Winding Up of Companies

Debated in Parliament on 7 Nov 2023.

Summary written by AI (learn more)

The Government acknowledges the importance of prioritizing employees' wage claims during a company's winding up, placing them above other unsecured debts except for winding-up costs and expenses.
The current $13,000 cap on owed wages under the 2020 Order is scheduled for review as part of regular policy assessments.
No immediate commitment was made to increase the priority of wage claims, but the Ministry of Manpower will consider adjustments during reviews.
The Minister emphasized that wage claims already have a high priority status in the insolvency framework.
The response indicates ongoing evaluation rather than a proposal for specific legislative changes.

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Full Transcript

He Ting Ru

Ms He Ting Ru asked the Minister for Manpower (a) whether the Ministry will consider increasing the priority given to owed employees' wages or salaries during the winding up of a company; and (b) whether the Ministry is reviewing the $13,000 cap on owed employees' wages and salaries prescribed under the Insolvency, Restructuring and Dissolution (Maximum Amount Payable in Priority) Order 2020.

Tan See Leng

The Government fully recognises the importance of employees' claims on wages or salaries in the event of their employer winding up. Such claims are already given priority above all other unsecured debts. They are behind only the costs and expenses of winding up, which are necessary for the winding up to proceed smoothly.

We will review the cap as part of our regular policy reviews.

Summary written by AI (learn more)

The Government acknowledges the importance of prioritizing employees' wage claims during a company's winding up, placing them above other unsecured debts except for winding-up costs and expenses.
The current $13,000 cap on owed wages under the 2020 Order is scheduled for review as part of regular policy assessments.
No immediate commitment was made to increase the priority of wage claims, but the Ministry of Manpower will consider adjustments during reviews.
The Minister emphasized that wage claims already have a high priority status in the insolvency framework.
The response indicates ongoing evaluation rather than a proposal for specific legislative changes.

Questions identified by AI (learn more)

Priority Given to Owed Employees' Wages during Winding Up of Companies | PAPERCUTS

Priority Given to Owed Employees' Wages during Winding Up of Companies

Debated in Parliament on 7 Nov 2023.

Summary written by AI (learn more)

The Government acknowledges the importance of prioritizing employees' wage claims during a company's winding up, placing them above other unsecured debts except for winding-up costs and expenses.
The current $13,000 cap on owed wages under the 2020 Order is scheduled for review as part of regular policy assessments.
No immediate commitment was made to increase the priority of wage claims, but the Ministry of Manpower will consider adjustments during reviews.
The Minister emphasized that wage claims already have a high priority status in the insolvency framework.
The response indicates ongoing evaluation rather than a proposal for specific legislative changes.

Questions identified by AI (learn more)

Full Transcript

He Ting Ru

Tan See Leng

We will review the cap as part of our regular policy reviews.

Summary written by AI (learn more)

The Government acknowledges the importance of prioritizing employees' wage claims during a company's winding up, placing them above other unsecured debts except for winding-up costs and expenses.
The current $13,000 cap on owed wages under the 2020 Order is scheduled for review as part of regular policy assessments.
No immediate commitment was made to increase the priority of wage claims, but the Ministry of Manpower will consider adjustments during reviews.
The Minister emphasized that wage claims already have a high priority status in the insolvency framework.
The response indicates ongoing evaluation rather than a proposal for specific legislative changes.

Questions identified by AI (learn more)

Priority Given to Owed Employees' Wages during Winding Up of Companies

Summary

Questions Identified

Full Transcript

He Ting Ru

Tan See Leng

Summary

Questions Identified

Priority Given to Owed Employees' Wages during Winding Up of Companies

Summary

Questions Identified

Full Transcript

He Ting Ru

Tan See Leng

Summary

Questions Identified