| Abstrakt: |
New Zealand workers face limited protections when their employer goes bankrupt, leaving many employees unpaid. Examples from overseas show that New Zealand should adopt better measures to safeguard workers. Currently, the Companies Act prioritizes the payment of liquidation costs and secured creditors before unpaid wages and other amounts owed to employees. There is no guarantee that employees will receive their unpaid wages, and the amount they can claim is capped. Other countries have implemented government schemes and super-priority status for employee claims to ensure they are paid before other debts. The previous New Zealand government proposed a social insurance scheme, but it was put on hold. It is unclear how many employees receive their owed amounts, but the current system does not guarantee payment. Following the best overseas examples would improve the situation for New Zealand workers. [Extracted from the article] |
