What happens if the company goes out of business and owes employees wages?

For some private enterprises, private enterprises, and individual enterprises, it is normal for them to go bankrupt and go bankrupt, and once the management decisions of the operators are unsuccessful or other factors are harmed, the company may go bankrupt. Once the company closes down, not only do they lose their jobs, but they also worry about wages. In that case, what happens to the wages of employees when the company goes out of business?

Although he worked for the company, it was the CEO who contracted the company's business, so the closure of the enterprise had nothing to do with his salary, and his boss should pay his salary. Now the boss can't see anyone, and it's hard to get paid for his salary. If the boss is really unable to repay under the premise of seeing the boss, the boss will not be arrested and imprisoned.

More often than not, it is to write IOUs.

The service commitment is just a repayment period. In the case of bankruptcy and closure of the enterprise, or the breakage of the capital chain, workers are very prone to anxiety, not only is the job gone, but it is very likely that the previous hard salary will not be paid.

Hence the Bankruptcy Code

Article 113 requires: The bankruptcy estate shall give priority to the repayment of bankruptcy expenses and common debts.

After that, it will be repaid in the following order: the salary owed by the bankrupt to the employee, the cost of medical treatment, disability allowance, and condolence payment, and the pension insurance that should be transferred to the employee's personal account.

Basically, the cost of medical insurance, and its laws and regulations.

The law requires that compensation should be paid to employees; The company owes employees salaries, medical treatment, disability allowances, and condolence payments. Salaries shall generally include hourly wages, hourly wages, assets, subsidies and subsidies, but non-remuneration income for labor services and expenses in areas such as labor protection do not belong to the category of salaries.

If you are an executive of an enterprise, your salary is calculated based on the average salary of your employees. Medical treatment and disability allowance are based on the medical insurance system during the employee's employment.

Social security benefits that are entitled to them or should be subsidized for safety accidents during work. The cost of condolence money refers to the condolence payment that the employee's family should enjoy after the death or injury on the job. The basic pension and medical insurance expenses that the enterprise owes to the employees should be transferred to your personal account, if the company's asset-liability ratio.

However, from the perspective of the practice of business failure, the cost of being assigned to the social development pooled account is generally not available (because the social development pooled insurance is second in the repayment order of the bankruptcy law).

The boss needs to find a way to make up the wages of the employees, and can sell the company to get a lot of cash to pay the employees.

If you file for bankruptcy, the company's remaining assets will be liquidated, and the arrears of employees' wages will be settled first.

In this case, the remaining assets of the company are auctioned off and the employees are then paid.

If the company closes down, the wages owed to the workers will be paid off with the company's bankruptcy estate.

If the company's assets are insufficient to pay off all debts, it may apply for bankruptcy liquidation in accordance with the law. The bankruptcy estate shall first pay off the wages owed to the employees after giving priority to the settlement of bankruptcy expenses and common debts. The rights of the employees of the enterprise should be protected in the first place when the enterprise goes bankrupt, and the wages and labor insurance premiums owed by the bankrupt enterprise to the employees should be paid on a higher priority basis.

After the bankruptcy of the company, the wages and medical treatment, disability subsidies and bereavement expenses owed to the employees, the basic pension insurance and basic medical insurance expenses that should be transferred to the personal accounts of the employees, as well as the compensation that should be paid to the employees according to laws and administrative regulations, do not need to be declared, and the manager shall make a list and publicize it after investigation, and the manager can directly claim it after the expiration of the publicity period. If an employee has objections to the entry in the list, he or she may request that the manager make corrections, and if the manager refuses to make corrections, the employees may file a lawsuit with the people's court.

Legal basis] Enterprise Bankruptcy Law of the People's Republic of China

Article 113 The bankruptcy estate shall, after giving priority to the repayment of bankruptcy expenses and common debts, pay off in the following order:

1) The wages and medical treatment, disability allowance and bereavement expenses owed by the bankrupt person to the employees, the basic endowment insurance and basic medical insurance expenses that shall be transferred to the personal accounts of the employees, and the compensation that shall be paid to the employees according to laws and administrative regulations;

2) the social insurance premiums owed by the bankrupt person other than those provided for in the preceding paragraph and the taxes owed by the bankrupt person;

3) Ordinary bankruptcy creditor's rights.

If the bankruptcy estate is sufficient to pay off the repayment claims in the same order, it shall be distributed proportionately.

The salaries of directors, supervisors and senior managers of a bankrupt enterprise shall be calculated on the basis of the average wages of the employees of the enterprise.

Legal analysis: 1. After the company goes bankrupt, the wages and medical treatment, disability subsidies and pension expenses owed to the employees, the basic endowment insurance and basic medical insurance expenses that should be classified into the personal accounts of the employees, as well as the compensation that should be paid to the employees according to laws and administrative regulations, do not need to be declared, and the list shall be made and publicized by the manager after the investigation, and the manager can directly claim it after the expiration of the publicity period. If employees have objections to the list records, they may request that the manager make corrections; If the manager refuses to make corrections, the employee may file a lawsuit in the people's court.

2. The people's court hearing bankruptcy cases shall protect the legitimate rights and interests of the employees of the enterprise in accordance with the law.

Legal basis: Article 48 of the Labor Law of the People's Republic of China The State implements a minimum wage guarantee system. The specific standards of the minimum wage shall be prescribed by the people of the provinces, autonomous regions and municipalities directly under the Central Government, and shall be reported for the record.

The wages paid by the employer to the employee shall not be lower than the local minimum wage.

Labor Contract Law of the People's Republic of China

Article 30 The employer shall, in accordance with the provisions of the labor contract and the provisions of the State, pay the labor remuneration to the worker in full and in a timely manner. If the employer is in arrears or fails to pay the labor remuneration in full, the worker may apply to the local people's court for a payment order in accordance with the law, and the people's court shall issue a payment order in accordance with the law.

Article 44 Under any of the following circumstances, the employer shall pay the wages and remunerations higher than the wages of the workers for normal working hours in accordance with the following standards: (1) if the workers are arranged to work longer hours, they shall be paid wages and remunerations of not less than 150 percent of the wages; (2) Where a worker is assigned to work on a rest day and cannot be arranged for compensatory leave, a wage remuneration of not less than 200 percent of the wage shall be paid; (3) Where a worker is assigned to work on a statutory holiday, he or she shall be paid a wage remuneration of not less than 300 percent of his wages.

1. What should I do if the company goes bankrupt and owes wages?

1. If the company goes bankrupt and the wages owed to the worker have IOUs and other proof of creditor's rights, he can directly sue the court; If there is no proof such as an IOU, it is generally necessary to apply for labor arbitration first, and if you are not satisfied with the arbitration award, you will file a lawsuit with the court; Alternatively, the worker can apply directly to the court for a payment order.

2. Legal basis: Article 113 of the Enterprise Bankruptcy Law of the People's Republic of China.

The bankruptcy estate shall be paid off in the following order after the bankruptcy expenses and common debts have been paid off first:

1) The wages and medical treatment, disability allowance and bereavement expenses owed by the bankrupt person, the basic endowment insurance and basic medical insurance expenses that should be transferred to the personal account of the employee, and the compensation that shall be paid to the employee according to laws and administrative regulations;

2) the social insurance premiums and taxes owed by the bankrupt person other than those provided for in the preceding paragraph;

3) Ordinary bankruptcy claims. If the bankruptcy estate is not sufficient to pay off the repayment claims in the same order, it shall be distributed proportionately. The salaries of directors, supervisors and senior managers of a bankrupt enterprise shall be calculated on the basis of the average wages of the employees of the enterprise.

2. How to compensate employees if the company goes bankrupt.

If the company goes bankrupt, the employee shall be given compensation for termination of the contract according to the regulations, and the economic compensation shall be paid to the employee according to the number of years the employee has worked in the unit and the standard of one month's salary for each full year. For those who are more than six months but less than one year, they will be counted as one year; If it is less than six months, the worker shall be paid half a month's salary.

The company went out of business and the wages owed were repaid with the company's property. After the dissolution of the company, a liquidation group shall be established in accordance with the law to deal with the company's debts, pay the liquidation expenses, employees' wages, social insurance premiums and statutory compensation with the company's property, and pay the outstanding taxes. The remaining property is distributed to the shareholders.

[Legal basis].Article 186 of the Company Law of the People's Republic of China.

After liquidating the company's property and compiling the balance sheet and property list, the liquidation group shall formulate a liquidation plan and report it to the shareholders' meeting, the general meeting of shareholders or the people's court for confirmation. The company's property is distributed according to the proportion of shareholders' capital contributions, and the shares are distributed according to the proportion of shares held by shareholders. During the liquidation period, the company shall continue to exist, but shall not carry out business activities unrelated to the liquidation.

The company's property shall not be distributed to shareholders until it is repaid in accordance with the provisions of the preceding paragraph.