Yes. As an employee, you have six months from the opening of the insolvency proceedings to apply for open claims at IEF-Service GmbH .
Insolvency means that an entrepreneur can no longer pay the payments due, including wages and salaries. He or she is obliged to apply for insolvency proceedings in court. This can be restructuring proceedings with or without self-administration, bankruptcy proceedings or debt settlement proceedings.
Self-administration means that the entrepreneur must submit a restructuring plan himself. Without self-administration means that an insolvency administrator is appointed to take care of the company and its employees.
Initially, the insolvency has no direct impact on your upright employment relationship. It does not mean that the employment relationship is automatically terminated. Affected employees are protected by the Insolvency Remuneration Fund (IEF Service GmbH).
The Insolvency Protection Association for Employees, ISA for short, asserts your claims. The ISA is an association of the Austrian Trade Union Confederation (ÖGB) and Chambers of Labour (AK). ISA offices are set up in the respective Chambers of Labour .
Insolvency remuneration is all current claims arising from the employment relationship – i.e. remuneration including overtime, allowances, bonuses, unused time credits, special payments such as holiday allowance and Christmas remuneration, termination compensation, holiday compensation and severance pay claims.
All employees, including apprentices, freelancers and home workers, as well as their surviving dependents or heirs, are entitled to insolvency pay.
In particular, contract workers and other atypical employees without an employment contract and employees who are in an employment relationship with the federal government, a federal state, a municipality or an association of municipalities are not entitled. Shareholders who have a dominant influence on the company are also not entitled to insolvency remuneration.
The claims arising from the employment relationship that were due within the last six months before the opening of insolvency proceedings or the dismissal order or six months before the end of the employment relationship are secured.
IMPORTANT: Unlike other creditors in insolvency proceedings, you as an employee not only receive a quota, but your claims are fully replaced.
If the claims have been unconditionally recognized by the insolvency administration, the award is made by means of a notice and then the instruction to the account or by post. The average processing time for an application for insolvency remuneration is six months.
TIP: The Chamber of Labour offers free advice and representation by the Insolvency Protection Association for Employees (ISA).
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