Under the law, an employee whose employer went bankrupt or whose company underwent liquidation is entitled to receive a benefit from the National Insurance Institute that includes payments, owed by the employer, up to the maximum amount set by the law: Indexation differentials from the day the debt was made to the day of the actual payment are be added to the wage and the severance pay paid by the National Insurance Institute.
The payment for wages is made first, and only afterword is, severance pay paid, up to the maximum amount set by the law.
If you work for a company that is in a dire financial position, you will be concerned not just about retaining your job, but whether you will get paid for outstanding salary and what your redundancy entitlements are.
There is a difference between an employer being in liquidation and administration.
No one wants their business to fail– but if circumstances have led to such an eventuality being unavoidable, it’s important to understand exactly what to expect from the procedure for you and your employees.