Section 72 of Employment Act CAP 226: Transfer of rights and remedies

    

(1) Where, in pursuance of section 66, the Minister makes a payment to an employee in respect of a debt to which this Part applies—
(a) on the making of the payment, any rights and remedies of the employee in respect of the debt or, if the Minister has paid only part of it, in respect of that part becomes rights and remedies of the Minister; and
(b) any decision of the Industrial Court requiring an employer to pay that debt to the employee has the effect that the debt, or the part of it which the Minister has paid, is to be paid to the Minister.
(2) Where a debt or any part of a debt in respect of which the Minister has made a payment in pursuance of section 66 constitutes a preferential debt within the meaning of the Companies Act (Cap. 486), and the rights which become rights of the Minister in accordance with subsection (1) include any right arising under any such provision by reason of the status of the debt, or that part of it, as preferential debt.
(3) In computing payment for the purposes of subsection (2), the aggregate amount payable in priority to other creditors of the employer in respect of—
(a) any claim of the Minister to be paid in priority to other creditors of the employer by virtue of subsection (2); and
(b) any claim by the employee to be so paid made in the employee’s own right,
any claim of the Minister to be paid by virtue of subsection (2) shall be treated as if it were a claim of the employee.
(4) The Minister shall be entitled, as against the employee, to be paid in respect of any claim made by the Minister the full amount of the claim before any payment is made to the employee in respect of any claim by the employee to be paid made in the employee’s own right.
(5) Any sum recovered by the Minister in exercising any right, or pursuing any remedy, under this section shall be paid into the National Social Security Fund.


Disclaimer: This document is not to be taken as legal advise.

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