Employee Protection During Corporate Rescue Under Insolvency Procedures Under OHADA Law: The Case of Cameroon

Abstract

Corporate rescue under insolvency procedures is an important mechanism aimed at saving financially distressed companies while preserving economic activity. Under the OHADA Uniform Act on Collective Proceedings for the Wiping Off of Debts, which applies in Member States such as Cameroon, the law provides measures intended to restructure companies and protect stakeholders, including employees. In principle, these procedures seek to maintain employment and ensure that workers’ rights are safeguarded while the company undergoes reorganization. Despite these legal provisions, the protection of employees during corporate rescue remains problematic in practice. Workers often face delays in wage payments, job insecurity, and limited participation in insolvency proceedings. The gap between the legal framework and its practical enforcement raises concerns about whether the existing OHADA rules adequately guarantee effective employee protection in Cameroon. The main research objective of this study is to examine the extent to which the OHADA insolvency regime effectively protects employees during corporate rescue procedures in Cameroon. The study is guided by the null hypothesis that the OHADA legal framework provides adequate and effective protection for employees during corporate rescue proceedings. Methodologically, the research adopts a doctrinal legal approach based on the analysis of statutes, case law, and relevant academic literature relating to OHADA insolvency law and labour protection. The study also considers practical experiences within the Cameroonian context. The findings suggest that although the OHADA framework formally recognizes employee interests, significant challenges persist in implementation, particularly regarding wage guarantees, job security, and enforcement mechanisms. The study recommends strengthening institutional enforcement and introducing clearer mechanisms for prioritizing employee claims during corporate rescue proceedings in Cameroon.