If you are an employee, then you should be concerned to what should happen to your employment contract should your employer become insolvent as a result of bankruptcy or liquidation. If your employer becomes insolvent, your employment contract will be brought to an end. Wise employees will usually join insurance scheme or policies to cover loss of employment as per Employment Insurance Act. The problem with these policies is that they expect you to find work when you are unemployed and you must accept anything the office suggest. Just because you are a banker today does not mean to say the insurer will cough up until you find another banking job.
Insolvent employers usually leave behind a trail of outstanding debts which include substantial payments due to employees. Luckily, employees are granted special protection and status in reclaiming certain outstanding payments. Debts can be recovered from two primary sources: (a) the liquidator, receiver or trustee (b) department of employment. What you can claim include the following:
1. All wages and salaries for services rendered during 3 months prior to the date of receiving the order, subject to a certain maximum. These include: guarantee payments, remuneration on suspension on medical grounds, any payment for time off, remuneration under a protective award and statutory sick pay
2. Any accrued holiday remuneration.
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Claiming Employment Payments from Your Insolvent Employer
My Page is designed to help beginners and average readers make money online to supplement the few dollars they may be earning from their Google Adsense – details of which you can find in My Profile Here, if you will.