Within the hospitality sector, the number of bankruptcies in January 2009 increased by 53 percent compared to the same month in 2008. What exactly are the rules regarding bankruptcy? And what can you do as an employee?
Bankruptcy often means dismissal for employees. If a bankruptcy is filed - this usually happens by the employer or creditors - then a trustee will terminate the employment contracts as soon as possible. In this case, there is NO need to apply for a dismissal permit from the CWI. If your employment contract has not yet been dissolved, but the company is bankrupt, then the Employee Insurance Agency (UWV) will take on the obligation to pay unemployment benefits.
Below you will find an overview of the most frequently asked questions regarding bankruptcy:
- Your employer has been declared bankrupt and you are still entitled to wages. What now?
A salary claim must be filed with the trustee. In some cases, the UWV takes over the employer's obligation to continue paying wages. You will then receive unemployment benefits due to the employer's inability to pay. Contact us for more information.
- How do you actually find out if your company has been declared bankrupt?
A company is only declared bankrupt when the court has pronounced the bankruptcy. This ruling is placed in a register. On the website www.rechtspraak.nl, everyone has access to this register. On this website, you will also find more information about the bankruptcy. It is important to note that if the trustee or employer requires you to continue working, you may be obliged to do so, even if the company is declared bankrupt. This is necessary so that you can continue to claim your wages.
- How long does the UWV's obligation to continue paying wages last?
This depends on the notice period that would be used in a 'normal' dismissal and from when no more wages are paid. The notice period starts on the day the dismissal is announced by the employer or trustee. However, the notice period never lasts longer than six weeks.
Arrears in wages are paid for a maximum of thirteen weeks, counted from the announcement of the dismissal. During the notice period, there is a right to continued payment of wages. If the notice period expires, or if you have found other work before that time, the benefit stops. If you have no work after this time, you can apply for unemployment benefits at the CWI.
- I still have annual leave days left. Does the UWV also pay these out in the event of bankruptcy?
The UWV only pays out the annual leave days of the year directly preceding the day of termination. If you have days that are older than a year, the UWV is unlikely to pay these.
- Is suspension of payments the same as bankruptcy?
Although suspension of payments and bankruptcy are technically not the same, the consequences often end up being similar.
Suspension, also known as a deferment of payment, is intended to give someone who temporarily cannot meet their debts a financial breathing space. In this way, it is hoped that the employer can put things in order. During this time, potential financiers can be sought to prevent a future bankruptcy. However, a suspension of payments often eventually leads to bankruptcy.
See more information about bankruptcies.