If your employer is declared bankrupt, it can create significant uncertainty about your job and income. Bankruptcy means the court decides the company doesn't have enough money to remain in business. From that point on, a trustee takes over the company's financial affairs, and your situation will be handled differently than usual.
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Your job and contract
After bankruptcy, your employment contract generally remains in effect until the trustee decides what to do with it. The trustee can:
- cancel your contract;
- allow your employment to continue if there are reasons to continue the work for the time being.
If your contract is terminated, the trustee must adhere to a notice period of up to six weeksDuring this period you retain the right to wages.
Wages and bankruptcy benefits
Usually a bankrupt company can no longer pay your wages. Fortunately, you can then apply for bankruptcy benefits from the UWVThis is a special benefit for employees whose wages are not paid by the bankrupt employer. With this benefit, you can generally receive:
- outstanding wages for a maximum of 13 weeks up to the start of your notice period;
- wages during the notice period (up to a maximum of 6 weeks);
- holiday pay, outstanding holiday days and pension premium for the past year.
The bankruptcy benefit will not exceed 150 percent of the maximum daily wage.
You must apply for bankruptcy benefits from the UWV, preferably within six months of no longer receiving wages.
Continue working or restart
Sometimes the curator wants allow the work to continue (partially) Or a restart with a new owner is possible. In those cases, you can often continue operating under the same or new terms. Discuss this with the trustee if you have any questions.
After dismissal: unemployment benefits
If you haven't found a new job after the bankruptcy payment, you're usually entitled to unemployment benefits. Apply for them as soon as possible. to the UWV as soon as your employment has officially ended.
Important practical steps
- Report to UWV if your employer is not paying your wages as soon as you notice this.
- Keep important documents such as employment contracts, pay slips and correspondence.
- Register as a job seeker with UWV as soon as your dismissal is final.
- Consider starting to apply for jobs in a timely manner if your job ends.
No transition payment
Please note: if you are dismissed because your employer goes bankrupt, you are not entitled to a transition payment (the payment that normally comes with dismissal). In our article we will discuss this further here.
In Summary
If your employer goes bankrupt, your work arrangements may suddenly change. The trustee decides what happens to your contract. You can apply for bankruptcy benefits from the UWV (Employee Insurance Agency) for wages, holiday pay, and outstanding days. If your job ends, you can usually receive unemployment benefits afterward. Make sure you take the right steps with the UWV and act quickly if your wages are no longer being paid.
Want to know more?
Do you have questions about bankruptcies? Or are you worried your employer might be going bankrupt and would you like to understand your situation and get advice on the best course of action? Then please contact us as soon as possible. Our Service Center is available weekdays from 8:30 AM to 5:00 PM at sc@unie.nl and +31 345 851 963.
