View/Open - Research Commons - The University of Waikato

terms to their liking, they either have to accept what has been offered or leave the
employment.
Employees‟ rights include the right to information and consideration in decision-
making, rights to financial interest including salary and rights to enjoy continuing
employment opportunity. 127 While the company is a going concern, employees
expect to be consulted and informed on matters affecting their interests. In cases
where employees have been informed and consulted, for example on investments or
relocation decisions, the economic well-being of the local community is better
served compared to when decisions are made by a distant board or dispersed and
remote investors. 128 Employees‟ participation in decision-making will promote
greater efficiency by producing better teamwork and at the same time increasing
productivity. 129 High productivity and motivation on the part of employees will
certainly benefit the company as a whole.
Employees sometimes find themselves being thrust into the creditors‟ role for claims
of unpaid wages. Insolvency legislation has given employees priority status in
respect of some portion of unpaid wages. 130 The priority status is given only to
amounts mentioned in the statute; employees will be considered as unsecured
creditors for claims above the specified sums. The preferential status conferred by
the legislation, however, is not of much assistance to employees since they are
ranked after fixed charge holders. Creditors can resort to other measures in order to
defeat the employees‟ claim, for example the creation of automatic crystalisation of
floating charges which gives the floating charge holder priority over employees‟
127 Milman above n101 at 147.
128 Parkinson above n50 at 398.
129 Ibid.
130
Section 292(1)(b) of the Malaysian Companies Act 1965; Schedule C Category 4 of the UK
Insolvency Act 1986; section 556(1)(e)-(h) of the Australian Corporations Act 2001; Schedule 7 (2)
(a) and also section 312 of the New Zealand Companies Act 1993.
143