Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

Protection of Workers' Claims (Employer's Insolvency) Convention, 1992 (No. 173) - Madagascar (Ratification: 1998)

The Committee takes note of the Government’s report and the attached documentation.

Articles 5 and 6 of the Convention. The Committee recalls its previous comment in which it had requested the Government to indicate the specific texts regulating the conditions under which and the limits within which privileged protection is accorded to workers’ wage claims in the case of bankruptcy or insolvency of the employer as provided for in sections 77 and 83 of the Labour Code. In its reply, the Government states that the above provisions are modelled after the French legislation and that there exist no other legislative or regulatory provisions applicable to this matter. The Committee is therefore bound to observe that the requirements of Part II of the Convention are given at present only partial effect and calls upon the Government to take all necessary steps to bring its legislation into closer conformity with the Convention. In particular, it draws the Government’s attention to the fact that the minimum coverage of the privilege for wages due may not be less than three months while the privilege for claims in respect of paid absence should not be limited to holiday pay but should extend to other types of paid absence such as sick leave or maternity leave.

Article 7. In its previous comment, the Committee had drawn attention to section 83 of the Labour Code which grants absolute priority to workers’ claims in respect of unpaid wages for the last 60 days of employment within a maximum monthly limit to be fixed by regulation and had requested the Government to specify the monetary limit currently in force. The Government indicates in its report that no such regulation has as yet been issued. The Committee takes note of this information and asks the Government to keep it informed of any further developments in this regard.

Article 8. The Committee recalls the Government’s statement in its first report to the effect that under section 75(2) of the draft new Labour Code workers’ claims are given a higher rank of privilege than those of the State and the social security system. While noting that the process of revision of the Labour Code has not yet been completed, the Committee requests the Government to keep it informed of any progress made in this regard and to transmit the text of the new legislation once it is enacted.

The Committee expresses its firm hope that the Government will not fail to take the above comments into account in finalizing the text of the new Labour Code and reminds it that the Office’s technical assistance is at its disposal. The Committee also requests the Government to provide in its next report all available information on the practical application of the Convention in accordance with Part IV of the report form.

[The Government is asked to report in detail in 2004.]