Unpaid wages due to bankruptcy

Employees may have received wages or other payments when a company goes bankrupt. To receive them paid, a claim must be declared in the company's bankruptcy estate. The Wage Guarantee Fund guarantees claims in the bankruptcy estate of companies on behalf of employees, which it then pays them.

While claims are settled, individuals may be entitled to unemployment benefits.

The first steps

Unauthorised

Anyone who claims against the Guarantee Fund of Wages shall not take any action that could prejudice the right of the Fund to reclaim the wages of the employer.

If a payment has been obtained from the Guarantee Fund for Wages by providing false information or if details have been disclosed that would have led to a refusal or reduction of payment from the Fund, the person who received the payment shall refund the amount that he has received incorrectly.

Interest

Claims that the Fund pays bear interest, as per the Act on Interest and Indexation No. 38/2001. Interest is calculated from the date of the claims due until the date of payment.

Taxes

The Wage Guarantee Fund is obliged to calculate the tax debit on wage claims and claims for compensation for wage loss during termination periods and return it to the collector in accordance with the law on the debit of public charges.

Laws and regulations