S.L. 452.84 Art. 6Utilisation of Fund.

(1) The Fund shall be utilized, at the Administration

Board’s discretion, to guarantee payment of valid claims for employees’ outstanding wages and for contributions to be paid by the employer in respect of occupational pension schemes resulting from contracts of service, as defined in the Act, when the Administration Board is satisfied that the employer of an employee to whom these regulations apply, has become insolvent: Provided that the maximum amount paid out of the Fund to an employee shall not exceed a sum which is equivalent to thirteen weeks’ national minimum wage payable at the time of the termination of employment of such employee.

(2) Without prejudice to subregulation (1), the Administration Board shall only take cognizance of a claim if -

(a) the employee has registered a valid claim for unpaid wages with the Administration Board within two months from the onset of the insolvency of the employer as defined in regulation 4, and

(b) the employee provides certified evidence that he has registered a valid claim for the unpaid wages in the insolvency proceedings of the employer and with the Department for Industrial and Employment Relations, and

(c) the claim registered by every individual employee shall be limited to the unpaid amounts due for unpaid wages, which, for the purposes of these regulations, shall consist of the basic wage for the relevant unpaid period, any unpaid overtime, arrears for any leave entitlement for the current and preceding calendar year, and any notice money payable in accordance with the provisions of the Act; and

(d) the claim registered by every individual employee refers to unpaid amounts which were due for wages payable within six months preceding the date of the onset of insolvency of the employer or preceding the termination of employment: Provided that these unpaid amounts shall in no case exceed a sum which is equivalent to thirteen weeks’ national minimum wage payable at the time of the termination of employment of such employee as provided in the proviso to sub-regulation (1); and

(e) the employee binds himself to reimburse the Fund with a sum equivalent to the amount paid out of the Fund by the Administration Board in respect of the claim made by the employee from any amounts retrieved from any court proceedings or from any settlement received from a liquidator, as the case may be.

(3) The employee shall, on registering a claim with the Administration Board, forward any documentation which may be necessary to enable the Administration Board to reach a decision as to the validity of the claim being presented and the Administration Board may request any information from any person to enable it to perform its obligations, and it shall be the duty of any such person to cooperate fully with the Administration Board.

(4) The Administration Board shall regulate its own procedure.

(5) The Administration Board shall keep proper books of account and records regarding claims registered and paid out of the Fund and any refunds which are obtained by the Administration Board as a result of its subrogated rights.

(6) The Administration Board shall have the power to appoint experts to assist it in any matter under its consideration, as may be required.

(7) The Administration Board shall publish an annual report of its activities together with the annual audited accounts of the Fund.

(8) The Administration Board 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 to the fulfilling of its objectives.

(9) The legal and judicial representation shall vest in the Chairperson or in any other member of the Administration Board whom the Chairperson may authorize in writing for such purpose.

(10) The address of the Administration Board shall be any such address which may be in use from time to time as the head office of the Department of Industrial and Employment Relations, and any correspondence shall be addressed to the Chairperson.