THE PROTECTION OF EMPLOYMENT CLAIMS IN CORPORATE BANKRUPTCY: A COMPARATIVE ANALYSIS OF MYANMAR’S APPROACH TO THE EMPLOYEE WELFARE FUND AND INTERNATIONAL PRACTICES

Abstract

This research examines the protection of employee claims in corporate insolvency under Myanmar law. Although the Myanmar Insolvency Law 2020 grants statutory priority to certain employment-related claims, that protection remains largely dependent on the availability of assets in the insolvent estate. In asset-deficient insolvencies, particularly those involving small and medium-sized enterprises, employees may remain unpaid despite formal legal recognition, exposing the structural limits of a priority-based model within a creditor-oriented insolvency framework. Using doctrinal and comparative analysis, this research argues that insolvency law alone cannot provide adequate protection for employee entitlements. By examining international models such as wage guarantee funds and employee welfare mechanisms operating outside the insolvency estate, the study identifies structural weaknesses in Myanmar’s current framework and proposes reform aimed at delivering more effective, timely, and socially responsive protection for employees in cases of employer insolvency.

Keywords: Corporate Insolvency, Employee Claims, Myanmar Insolvency Law 2020, Statutory Priority, Wage Protection, Asset-Deficient Insolvency, Wage Guarantee Schemes, Social Protection