How to compensate employees after the company goes bankrupt
According to the relevant laws and regulations of our country, the company cannot continue to operate after the bankruptcy of the company. If the company cannot continue to operate, it needs to terminate the labor contract with the employees.
Then according to the labor law, how to compensate the employees after the bankruptcy of the company?
According to the relevant laws and regulations of our country, if the company makes compensation to the employees after bankruptcy, the employees need to pay one month’s salary as compensation for each full year of working in the company.
Article 47 [calculation of economic compensation] the economic compensation shall be paid to the laborer according to the standard of paying one month’s salary for each full year of the laborer’s working years in the unit. If the period is more than six months but less than one year, it shall be calculated as one year; if the period is less than six months, economic compensation of half a month’s salary shall be paid to the laborer.
The term “monthly wage” as mentioned in this article refers to the average wage of the laborer for 12 months before the termination or dissolution of the labor contract.
What to do if the company goes to bankrupt but the compensation to the employees is insufficient
According to the relevant laws and regulations of our country, if the compensation to the employee is insufficient after the company goes bankrupt , the enterprise can carry out bankruptcy liquidation, and compensate the employees if there is residual property after paying off the bankruptcy expenses and joint debts. If you need any more information, feel free to contact us. We will be glad to assist you.
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