Originally Posted by
widgeon
Ref Insolvency.
Having just been through it I speak from experience. The secured creditors have the first call on any proceeds from sale of assets ( normally the bank ) if any thing is left after this the employees are paid and then any unsecured creditors ( all the unlucky suppliers) . There is Government scheme that pays up to $2,000 to employees to cover unpaid wages and severence. This in in Canada, not sure what the EU rules are but i would suspect they are similar .
There are no unified EU regulations for insolvencies, the national laws apply. In this case Austrian laws, which seem extremely complicated. But there is a national insolvency fund, which for employees will cover the last 6 months salary owed (up to a cap of nearly 10,000 Euro per month) plus any payments in lieu of notice owed as per the employment contract. That is if you're directly employed by the insolvent company...