Written Answer to PQ on Treatment of Employees' Wages and Salaries during Insolvency

NOTICE PAPER NO. 2349 OF 2023 FOR THE SITTING ON OR AFTER 7 NOVEMBER 2023
QUESTION NO. 5406 FOR ORAL ANSWER

MP: Ms He Ting Ru

To ask 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.

Answer:

1. 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.

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