Bankruptcy and Corporate Liquidation (Employee Rights)

The National Insurance Institute (NII) protects employees whose rights were prejudiced as a result of difficulties faced by their place of work, which resulted in the issuance of a bankruptcy and corporate liquidation decree.

An employee whose employer went bankrupt or whose company underwent liquidation is entitled to receive a benefit from the NII that includes wage compensation, severance indemnity and payment of the debt owed to the provident fund for arrears accumulated by his employer.

In September 15, 2019 entered into force the Insolvency and Economic Rehabilitation Law (5778-2018) which provides changes to the existing insolvency rules. Accordingly, we have modified and adapted the conditions of entitlement, claim submission requirements and benefit payment.