BANKRUPTCY AND EMPLOYEE RIGHTS

Abstract

The rights of employees in the event of bankruptcy can be analyzed twofold, depending on whether they are viewed from the angle of the regulations governing the bankruptcy procedure, or from the angle of labor law censuses. Systemic analysis and finding the most adequate solution is precisely in linking these two angles of observation and finding the balance between satisfying different interests. Today's modern society is literally intertwined between economic and social interests, and this inevitably reflects on the rights of employees in bankruptcy proceedings.The stability of employment, as well as all other employees rights, have come to the forefront due to frequent changes in the work process, due to technological progress, and the weakening of the position and negotiating power of the trade unions, then due to the eventual poor business of the business, Hence, a drastic increase in the number of businesses subject to bankruptcy proceedings, and consequently of all legal consequences that it entails. These consequences are not only legal, economic, but also sociological, since all employees in such a business entity at the moment of the initiation of bankruptcy proceedings cease their employment and from that moment they become creditors of their former employer for all possible arrears to which they are entitled on the basis of employment, on the one hand, but on the other they are left without work and without basic existential means of living. After the opening of the bankruptcy procedure, the social aspect and the protection of the rights of employees whose employment is terminated by law, it becomes the responsibility of the state that should provide protection to these persons with their labor-based legislation. Due to all of these, employees must not be treated in the same way as other bankruptcy creditors, but their rights in the event of bankruptcy of the employer must be ensured by additional mechanisms.