| dc.description.abstract | The legislators consider employees’ survival rights and property rights, therefore regulating wage claims as preferred right (priority). However the priority of wage claims have not be sorted under current law, only a preferred right is given to payment of wages which are payable under the labor contracts and which have been overdue for a period not exceeding six months. Nevertheless, the sequence of wage claims is after the mortgages, making employees unable to recover their full wages from bankruptcy enterprise. Therefore, Overdue Wages Payment Fund is set up under Labor Standards Act, but it still has some difficulties in practice.
There is an insufficient protection on wage claims in current law system; we should protect employees by providing related statutes in Labor Standards Act and Bankruptcy Act simultaneously. In the case of the sequences between wage claims and mortgages, there are two suggestions worthy considering to carry out. First, adjusting or removing the limit of wage preferred right, and making wage claims prior to mortgages. Second, adopting the “part of the priority principle” to substitute for mortgage’s absolute priority.
Except for Labor Standards Act, the draft of Insolvency Law which was published in 2007 increases the possibility of paying off wage claims. Wage claims can be satisfied from bankruptcy estate at any time rather than following bankruptcy proceedings, although the wage claims have the limit of time which is up to 6 months, it is still better than current law.
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