Cap. 452 Art. 21Guarantee fund.

(1) There is hereby established a Guarantee Fund

(hereinafter referred to as "the Fund") for the purpose of guaranteeing payment of unpaid wages due by an employer to those employees whose employment is terminated because of the employer’s proved insolvency, which fund shall be regulated and administered in such manner as the Minister may prescribe.

(2) The Minister may, after consultation with the Minister of Finance and with the Board, prescribe regulations for the purpose of giving better effect to the provisions of this article; without prejudice to the generality of the foregoing, such regulations may establish -

(a) the manner in which the Fund shall be set up and initially funded and for this purpose the Minister is authorised to endow the fund with such amount and for such period as the Minister may prescribe;

(b) the level of proof required in order to prove insolvency of the employer;

(c) the rate of contribution which the State, employers and employees shall contribute towards the continued funding of the Fund;

(d) the manner in which such Fund shall be administered;

(e) any class of employment that is precluded from making a claim under the Fund;

(f) the manner and the circumstances in which a claim may be made by an employee for payment from the Fund and the manner and the circumstances in which a claim shall be paid to an employee out of the Fund;

(g) the maximum amount which can be paid out of the Fund to any single claimant;

(h) the right of the Fund to be subrogated into the rights of the employee to whom an amount is paid from the said Fund; as well as the right of the Fund to claim refund of any amounts so paid, from the employer of the employee;

(i) the measures and procedures that may be required in order to prevent abuse.

(3) The Fund shall have a distinct legal personality and shall be capable of entering into contracts, of suing and being sued, and doing all such things and entering into such transactions as are incidental or conducive for the fulfilment of its objectives as may be prescribed by the Minister.

(4) The Fund shall be empowered to collect, recover and institute proceedings for the payment of sums due to it, in terms of the provisions of this Act.

(5) The legal and judicial representation of the Fund shall vest in the chairperson or in any other person as the Fund may authorise for this purpose.