ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Claim Wages and Salaries from Your Insolvent Employer

Updated on November 22, 2008

Employment Insurance Act

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.

Substantial Payments Due To Employees

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.

Loss of Employment is Not the End of the World

Wise employees will usually join insurance schemes or policies to cover loss of employment
Wise employees will usually join insurance schemes or policies to cover loss of employment

Cover Loss of Employment by Insurance

And because loss of employment from insolvent employers will always be there, it is always good to find someone out there who can recommend a decent insurance policy to cover loss of employment in case of your employer's insovency. The problem with these insurance 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.

Battle with Ordinary Creditors for Any Balance

Claiming Employment Payments from the liquidator, receiver or trustee is limited up to a certain maximum; otherwise you have to battle with ordinary creditors for any balance. 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.

Redundancy Fund

The bad thing about pursuing a claim against your employer's assets is the delay and furthermore, there may be insufficient assets available to meet your claim in full. Consequently it may be more profitable to submit a claim to the department of employment for payment out of the redundancy fund. Also read Claiming Wages and Salaries from Your Department of Employment.

Decent Insurance Policy

And because loss of employment will always be there, it is always good to find someone out there who can recommend a decent insurance policy to cover loss of employment in case of your employer's insovency. The problem with these insurance 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.

The hubber's website 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.

Comments

    0 of 8192 characters used
    Post Comment

    • irajlk profile image

      irajlk 

      8 years ago

      nice hub

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)