By Muhamad Yohaniz bin Atan
When a company goes into liquidation, employees are often told that their wages have priority. That sounds reassuring, but it can hide a difficult reality: priority is not the same as payment.
A worker may still need to prove what is owed, identify the right category of claim, show when the debt arose and respond if the liquidator disputes the claim. For someone who has just lost a job and may already be waiting for months of unpaid wages, this process can be difficult to navigate.
Malaysia’s Companies Act 2016 gives certain employee-related debts preferential treatment in a winding-up. Section 527 places…