When an employer is declared bankrupt or undergoes corporate reconstruction, employees may be entitled to a wage guarantee from the state. This protection ensures that you, as an employee, receive compensation for unpaid wages that cannot be covered by the employer.
The wage guarantee covers wages earned within three months prior to the bankruptcy application or corporate reconstruction, as well as severance pay according to the Employment Protection Act (LAS). The wage guarantee also includes accrued vacation pay for both the current and the previous earning year. However, the compensation is limited to a maximum of four price base amounts.
Bankruptcies affect all aspects of a business and can be complex to navigate. That's why it is important for us to support employers in wage matters and ensure that their employees receive the wage guarantee they are entitled to.
Contact us for the right guidance and support throughout the process.
