business consultant John Silver

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The insolvency laws in Mauritius are not humane when it comes to salaries

Upon learning that the salaries to be paid for actual days worked by the employees/workers comes in the third position of priority after mainly the legal administrator’s fees and the government’s mandatory charges, I came to ponder that this law is not fair on the human kind.

Having lived a real-life situation at a client’s place under legal administration, I will say that the application of that law is definitely a different story which culminates in frustration, despair, loss of trust and in worst cases violence to an extreme level.

Upon reading an article on the Irish Times, I will agree when they say that ‘Bankruptcy should be made more humane.’ 

While attempting to solve the difficult situation that the business is going through while facing financial failure, the hardest hit are the low level employees who gave all their sweat to finally not be able to make both ends meet and face personal bankruptcy on their turn. 

Hence, I draw attention to a need for insolvency laws to pay the employees for the days worked and years of service before the government’s actual mandatory charges. By taking this call, the whole society benefits and it does not accentuate the situation of the rich getting richer. On the other hand, lifting the corporate veil to ask for the directors to liquidate their personal assets is another wake up call to give to management teams that employees/workers are actually human and not just disposable assets.