My employer is bankrupt. What now?

The application for bankruptcy takes some time. If the court has not yet declared the bankruptcy, but you have not received your wages on time, send your employer a salary claim letter, preferably by registered post. Download an example of a salary claim letter here. This makes it clear that you are doing everything you can to get your salary. You can also show this letter to the UWV and the administrator at a later stage.

How do I know if my employer is bankrupt?

A company is only bankrupt if the court has declared the bankruptcy. The declaration is placed in the Central Insolvency Register. On the website www.rechtspraak.nl, everyone has access to this register.

What does an administrator do?

The administrator is a lawyer who specialises in handling bankruptcies. The administrator is appointed by the court. From the moment they are appointed, the employer's powers are transferred to the administrator. The employer can no longer make independent decisions for the company and cannot make payments.

Can the administrator dismiss me?

The administrator can terminate the employment contract. No permission is needed from the UWV or the court for this. Terminating the employment contract is usually one of the first things the administrator does. You will receive a letter stating when the employment contract ends. The administrator can terminate all employment contracts. There are no dismissal prohibitions. This means that your employment contract can also be terminated if, for example, you are ill. You will not receive a transition payment.

The administrator must, in principle, observe the notice period stated in your CLA or employment contract, but it is a maximum of 6 weeks. This also applies if a longer period is stated in your CLA or employment contract. The notice period starts immediately.

Outstanding wages

If an employer is declared bankrupt, wages are often not fully paid. The UWV can then take over the employer's salary payment obligations. You can report to the UWV and apply for a social benefits due to insolvency. The UWV often organises meetings specifically for employees that you can attend. The UWV can then help you with filling out all the forms and applying for the social benefits.

Which claims are taken over by the UWV?

• The wages you are still owed for up to 13 weeks before the termination date. For example, outstanding wages, overtime, expense allowances, thirteenth month, additional leave days.
• The wages over the notice period up to a maximum of 6 weeks after the termination date.
• For up to 1 year before the end of the employment: your holiday pay, holiday days, and unpaid pension contributions.

What to do if the UWV does not reimburse?

It may be that the UWV does not pay all the claims you have against your employer. This can be the case, for example, if you have a salary arrear of more than 13 weeks. All claims not reimbursed by the UWV can be submitted to the trustee. However, bear in mind that the chance of actually receiving your claim is very small. According to the law, claims from, for example, the tax authorities take precedence, leaving little for other creditors. Moreover, it often takes a long time before you receive notification of whether your claim will be paid.

Can the trustee require me to continue working during the notice period?

Yes, they can. During the notice period, you are still employed.

What if I find a new job?

You can resign from your job with the trustee. However, be mindful of a notice period. This is stated in your contract or CLA. Usually, the notice period for an employee is 1 month. In the event of bankruptcy, your notice period, like that of the trustee, is never longer than 6 weeks. Often you may leave earlier from the trustee, but always discuss this.

What is a restart?

A restart is the continuation of (the healthy parts of) the company after bankruptcy. The administrator assesses whether the company can be restarted in whole or in part. If a restart is possible, you will be informed as an employee.

If there is a restart after bankruptcy, do I retain my employment terms?

No, if there is no prepared restart, there is no transfer of undertaking. You will be offered a new employment contract. This may mean that you receive a different salary and other employment terms. However, if you are offered an equivalent position, a probationary period cannot be included again in the contract. 

Is the new owner obliged to employ me?

The administrator always tries to place as many staff as possible with the new owner during a restart, but this is not always successful. The new owner is not obliged to take over staff.

Am I obliged to work for the new owner?

During a restart, you cannot simply refuse a job with the new owner. Within the framework of the WW, you must accept suitable work; otherwise, you are considered voluntarily unemployed, which can affect your entitlement to benefits.

What if I become unemployed?

If you know you are going to lose your job, register as a job seeker with the UWV as soon as possible. This is a condition for being able to receive WW benefits.

Is suspension of payment the same as bankruptcy?

Suspension of payment, also known as a moratorium, is intended to give a company that temporarily cannot meet its debts a financial breathing space. In this way, the employer hopes to put things in order. During this time, potential financiers can be sought to prevent future bankruptcy. Unfortunately, this is not always possible, and bankruptcy may still follow.

If the court grants a company suspension of payment, you can also find this ruling in the Central Insolvency Register. When the suspension is pronounced, an administrator is appointed who, together with your employer, maps out and manages the financial situation. The employer needs the cooperation, authorisation, or assistance of the administrator for important decisions. During the suspension, debts cannot be paid off arbitrarily. Debts incurred before the suspension are paid proportionally. This means you may not receive your full salary.

As an employee, you can then – just like in bankruptcy – apply for benefits from the UWV due to payment inability.