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My employer is going bankrupt, what now?

This year, the number of companies going bankrupt has risen sharply. When your employer goes bankrupt, he is no longer able to pay his costs. This is referred to as the so-called inability to pay. This has major consequences for you: your wages are no longer paid. Moreover, you are suddenly out of work. What exactly should you pay attention to in such a situation, and what are you entitled to? You can read it in this blog.

Any information about your rights in bankruptcy? Download our brochure!

Bankruptcy

When your employer is in financial difficulties and can no longer pay his costs – including your wages – we speak of an inability to pay. Sometimes there is a permanent inability to pay. In such a case, your employer can file for bankruptcy. If your employer has two or more creditors, they can also file for bankruptcy with the court. You can also do this together with a colleague, if you do not get your wages and the turnover of the company is poor.

Curator

If the judge declares your employer bankrupt, he appoints a trustee who makes decisions about the company and tries to pay creditors: this person becomes, as it were, your new employer. The curator can terminate your contract or indicate that your employment will continue for the time being.

Contract is canceled

If the curator terminates your contract, he must adhere to the notice period: this is a maximum of six weeks, unless otherwise stipulated in your collective labor agreement or employment contract. You are entitled to your salary until the end of your contract. After that you can go to the UWV apply for bankruptcy payment† Please note: you must do this within 26 weeks after you have no longer received wages. The bankruptcy payment amounts to a maximum of 150 percent of the maximum daily wage.

For example, the bankruptcy payment may include:

  • your wages for a maximum of 13 weeks until the date of your dismissal
  • your salary during the notice period
  • your holiday pay, outstanding holidays and pension premium over the last 12 months before your dismissal

You can keep working

It is also possible that the bankruptcy trustee will continue your employment. Then you can continue to work and you retain your right to wages. You can of course resign yourself and discuss other options for termination of employment with the curator.

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Want to know more?

Do you have questions about bankruptcies? Or are you afraid that your employer will go bankrupt, and would you like insight into your situation and advice about what you can do best? Please contact us as soon as possible. Our Service Center is available every working day from 8.00 am to 18.00 pm via sc@unie and 0345 851 963.

You can also use our brochure about bankruptcies you will find a lot of useful information there.