Gov't moves bill to secure minimum wages in cash-starved companies

The government on Wednesday forwarded amendments to legislation regulating workers' rights during bankruptcy proceedings to parliament under fast track according to which the relevant state agency will pay up to three minimum wages for workers whose employer goes bankrupt or wages are not being paid due to the employer's account being frozen.

Employers who do not pay out wages by the last day of the month for the preceding month, will in that case owe the FINA - Financial Agency - and will be required to submit a calculation of unpaid wages and apply for default payment of wages.

In cases where accounts have been frozen, the agency for the guarantee of employee receivables will submit a joint request for wages to be paid out equal to the minimum wage for all employees who have not been paid.

If an employer fails to respect these obligations, the payment of wages will be secured by seizure or ban on access to money in any possible account.

The Agency will process employers' applications for the payment of minimum wages to employees and take on the receivables from the employer.

The proposed law is expected to enter into force on 1 September along with a new bankruptcy act.

(Text: HINA)

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