Rahayu Mahzam on employment disputes by undischarged bankrupts

An undischarged bankrupt is not required to seek the approval of the Official Assignee (OA) or a private trustee in bankruptcy before he can file an employment claim at the Tripartite Alliance for Dispute Management (TADM). However, if mediation at the TADM is unsuccessful and he chooses to file a claim at the Employment Claims Tribunals, the bankrupt will need to apply to the OA or a private trustee in bankruptcy for a sanction. Senior Parliamentary Secretary for Law Rahayu Mahzam said this in reply to an MP’s question in Parliament on Thursday (Feb 23). She stated that the requirement exists to protect the bankruptcy estate and the interests of the bankrupt's creditors from costs incurred by the bankrupt that may be frivolous or legally unmeritorious.