Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part XIII
396. Liability of receiver under pre-existing employment contracts
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
A receiver is not liable for payment in relation to a contract of employment entered into before the receiver’s appointment, unless –
the receiver expressly adopts the contract in writing; or
subsection (3) applies.
The adoption of a contract under paragraph (a) of subsection (1) may exclude or limit the liability of a receiver, other than a receiver appointed by the court under subsection (1) of section 373.
Rescue, Rehabilitation and Insolvency
A receiver is liable for payment in relation to a contract of employment entered into before the receiver’s appointment, of –
wages or salary;
advance personal income tax;
provident fund dues;
statutory gratuities; and
employees trust fund dues that accrue from the date of appointment of the receiver up to –
the earliest of –
the date before the end of the receivership;
the date on which the receiver ceases to be a receiver; and
the date of termination of the contract, if the receiver gives notice of termination of the contract, in accordance with the law applicable to termination of employment, within ten working days after the appointment;
or
the earlier of –
the end of the receivership; and
the date on which the receiver ceases to be a receiver, if the receiver does not give notice of termination of the contract, in accordance with the law applicable to termination of employment, within ten working days after the appointment.
Rescue, Rehabilitation and Insolvency
The court may, on the application of the receiver, made before the end of the period of ten working days referred to in paragraphs (f) and (g) of subsection (3), extend that period on such terms and conditions as may be necessary.
Part XIV