My employer is bankrupt: what can I do?
My employer is bankrupt: what can I do?
My employer, a limited company based in Geneva, hasn't paid me my wages for two months despite my protests. I've just found out that the company is bankrupt. What should I do to try and get what's owed to me as quickly as possible? This situation comes at a particularly bad time during the festive season, with all the financial needs that entails...
T.
First and foremost, you should be aware that an employee who has not been paid may refuse to work until he or she has received his or her remuneration; this does not mean that he or she loses the right to a salary, unless he or she is in default of work for some other reason. In the event of the employer's insolvency, the employee may also terminate the employment contract immediately if security has not been provided within a reasonable period of time to guarantee his contractual claims, pursuant to art. 337a of the Swiss Code of Obligations (CO).
With regard to salary settlement, the Federal Law on Compulsory Unemployment Insurance and Compensation in the Event of Insolvency (LACI) introduces loss-of-earnings insurance enabling employees who are subject to it to claim compensation if their employer has been declared bankrupt. This compensation covers outstanding salary claims for a maximum of the last four months of employment before the declaration of bankruptcy, provided, of course, that there are salary arrears. Only claims subject to AVS/AC contributions are covered. The compensation also includes the proportional part of any 13th wages or bonuses, holiday pay, public holiday pay and other remuneration (overtime, shift work, night work, Sunday work, etc.).
All persons holding a managerial position in the company, as well as their spouses, partners, holders of a financial interest or employees who have reached retirement age, are not entitled to unemployment benefit in the event of insolvency.
In order to claim this compensation, the employee must act quickly; he only has sixty days from publication of the bankruptcy in the Swiss Official Gazette of Commerce to file his claim (art. 53 LACI). However, if the person concerned could not reasonably have known that their employer had been declared bankrupt, compensation may be granted for wages earned after the bankruptcy ruling or until knowledge of the bankruptcy.
As you can see, your employer's bankruptcy has already been declared, so you should immediately file a claim with the Unemployment Fund to receive your back pay.
