PREFERENTIAL CLAIMS IN BANKRUPTCY ACT
Arrangement of Sections
2. Priority debts
3. Discharge of debts
4. Distress for rent
5. Application of Act to a deceased insolvent
to make provision with respect to preferential payments in bankruptcy; to give effect to the International Labour Conference Convention 173 Concerning the Protection of Workers’ Claims in the event of the Insolvency of their Employer, Adopted by the Conference at its Seventy-ninth Session, at Geneva, on 23rd June, 1992, to which Zambia is a State Party; and to provide for matters connected with or incidental to the foregoing.
[28th April, 1995]
Act 9 of 1995.
This Act may be cited as the Preferential Claims in Bankruptcy Act.
(1) Subject to this Act, in a bankruptcy there shall be paid in priority to all other unsecured debts—
(a) all amounts due by way of wages or salary (whether or not earned wholly or in part by way of commission) accruing to any employee within the period of three months before the date of the receiving order;
(b) all amounts due in respect of leave accruing to any employee within the period of two years before the date of the receiving order;
(c) all amounts due in respect of any paid absence (not being leave) accruing to any employee within the period of three months before the date of the receiving order;
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