Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Protection of Wages Convention, 1949 (No. 95) - Bahamas (Ratification: 1976)

Article 10 of the Convention. Attachment of wages. In the absence of the Government’s reply on this point, the Committee requests the Government to indicate any measures taken or envisaged to establish the conditions under which and the limits within which wages may be seized following a court order for the repayment of outstanding debts.

Article 11. Privileged protection of wage claims in bankruptcy proceedings. The Committee understands that the Government has announced its intention to adopt new legislation in order to improve the protection of workers’ service-related claims, including redundancy pay, in the case of the employer’s bankruptcy following concerns arising from recent situations whereby foreign companies ceased their activities without paying hundreds of workers what was due to them in severance pay. The Committee requests the Government to keep the Office informed of any progress made in this regard and to transmit the text of any amendments to the bankruptcy legislation once they have been adopted. In this connection, the Committee wishes to refer to the Protection of Workers’ Claims (Employer’s Insolvency) Convention, 1992 (No. 173), which offers modern responses to current challenges of corporate insolvency, in that it strengthens the traditional privilege system while exploring new means of protection in the form of wage guarantee institutions. The Committee, accordingly, encourages the Government to give favourable consideration to the ratification of Convention No. 173 and to keep the Office informed of any decision taken in this regard.

Article 12(2). Final settlement of wages due. The Committee notes that, apart from section 28(1) of the Employment Act, which provides that payment of redundancy pay must be made before or on the date of the employee’s redundancy, there is no provision addressing the question of the prompt settlement of all wages due upon the termination of the employment contract. However, the Committee understands that, following a series of incidents where businesses have closed leaving behind considerable amounts of wage debts, the Government is considering measures to prevent similar situations in the future. The Committee accordingly requests the Government to indicate any measures taken to ensure that workers may recover swiftly all sums due to them upon the termination of their employment contract, as required under this Article of the Convention.