PART
VI PRIORITY
OF WAGES 31. Priority
of wages over other debts. (1) Where
by order of a court made upon the application of any person holding
a mortgage, charge, lien or decree (hereinafter referred to as “the
secured creditor”) or in the exercise of rights under a debenture the
property of any person (hereinafter referred to as “the person liable”)
liable under any of the provisions of this Act to pay the wages due
to any employee or to pay money due to any subcontractor for labour
is sold, or any money due to the person liable is attached or garnished,
the court or the receiver or manager shall not authorise payment of
the proceeds of the sale, or of the money so attached or garnished,
to the the secured creditor or the debenture holder until the court
or the receiver or manager shall have ascertained and caused to be
paid, out of such proceeds or money, the wages of such employee, or
the money due to any subcontractor for labour under a contract between
him and the person liable, which the person liable was liable to pay
at the date of such sale, attachment or garnishment. Provided that this section shall only apply to the sale of a place
of employment on which: (a) any
employee to whom wages are due as aforesaid; (b) any
employee to whom wages are due by such subcontractor for labour as
aforesaid; (c ) any
subcontractor for labour to whom money is owed on account of the
subcontract by the subcontractor for labour as aforesaid; was employed
or worked at the time when such wages were earned or such money accrued
due, and to the proceeds of the sale of any products of such place
of employment and of any movable property therein used in connection
with such employment and to any money due to the person liable on account
of work performed by such employee or subcontractor for labour or derived
from the sale of the products of such work; Provided further that: (a) where
the person liable is an employer the total amount of the wages of
any employee to which priority over the claim of a secured creditor
is given by this section shall not exceed the amount due by the employer
to the employee as wages for any four consecutive months' work; (b) where
the person liable is a principal and where the wages are claimed
from such principal under section 33 the total amount of the wages
of any employees to which priority over the claim of a secured creditor
is given by this section shall not exceed the amount due by the principal
to the contractor at the date of the sale, attachment or garnishment
unless the contractor is also a subcontractor for labour; (c ) where
the person liable is a contractor or subcontractor who owes money
to a subcontractor for labour the total amount due to such subcontractor
for labour to which priority over the claim of a secured creditor
is given by this section shall not exceed the amount due by such
subcontractor for labour to his employees (including any further
subcontractors for labour under such first-mentioned subcontractor
for labour) for any four consecutive months' work. (2) In this
section, except for the second proviso, “wages” includes termination
and lay-off benefits, annual leave pay, sick leave pay, public holiday
pay and maternity allowance. 32. Reference
by the Court to Director-General. (1) For
the purposes of ascertaining the amount due to any employee or subcontractor
for labour under section 31, the court or the receiver or manager may
refer the question to the Director-General with a request that he holds
an inquiry thereinto and forward his findings in respect thereof to
the court or the receiver or manager , and the Director-General shall
comply with any such request. (2) For
the purpose of any inquiry under subsection (1) the Director-General
shall have all the powers conferred upon him by section 70(f) and Section
80 shall have effect as if the inquiry were being held under section
69.
