A new liquidation framework places employees ahead of other creditors, a reform government says was shaped by the long-running plight of former BCL and Tati Nickel workers.
SESUPO RANTSIMAKO
The government is moving to prevent a repeat of the plight suffered by former BCL and Tati Nickel employees following the closure and liquidation of the two mining companies, with a new liquidation law placing employees at the front of the queue during the liquidation process.
WORKERS FIRST
Speaking to The Botswana Gazette on the sidelines of a meeting with former BCL and Tati Nickel employees over their long-awaited compensation, Labour and Home Affairs Minister Pius Mokgware said a new law on liquidation commenced at the beginning of September 2026.
Mokgware said the new framework reverses the previous arrangement under which employees were paid after other creditors, with workers now required to be paid first during liquidation. He said the change was specifically informed by the experiences of former BCL and Tati Nickel employees.
OLD SYSTEM
Under the previous legal framework, the minister said, employee claims were subject to the prescribed order of priority during insolvency and liquidation. The published Insolvency Act contains Section 85, titled “Servants’ wages”, which gives a limited preferential claim for certain arrears of wages from the free residue, subject to conditions and a statutory monetary limit.
Mokgware, however, said the new liquidation framework goes further, providing that employees must be paid first during the liquidation process. The minister said the intention is to prevent workers from being left vulnerable when companies collapse and their assets are liquidated.
BCL LESSONS
Mokgware said the experiences of former BCL and Tati Nickel workers exposed the shortcomings of the previous system and prompted government to rethink the treatment of employees when companies enter liquidation.
He said the amendment was specifically informed by the two cases to ensure that workers are not left at the back of the queue in future company closures.
YEARS WAITING
The issue remains particularly sensitive for former BCL and Tati Nickel employees, who have spent years waiting for compensation following the closure and liquidation of the mines.
At a meeting in Francistown, former Tati Nickel workers expressed frustration over the continued delay, saying the prolonged liquidation process had caused serious financial difficulties, including mounting bank debts.
STILL WAITING
The BCL and Tati Nickel cases have become a stark example of the difficulties employees can face when major companies collapse and enter liquidation.
Hundreds of former employees were left without jobs following the mining companies’ financial difficulties and have since been caught up in a lengthy process over the disposal of assets and payment of compensation.
NEW APPROACH
Mokgware said the new approach is intended to ensure that future company closures do not leave employees without meaningful protection while other creditors are settled.
The minister urged the former workers to remain patient while the current legal process runs its course, saying government remained committed to their welfare.