STARTING FROM AUGUST 13, A NEW PROCEDURE FOR PAYMENTS TO EMPLOYEES IN THE EVENT OF AN ENTITY LIQUIDATION COMES INTO EFFECT
14/08/2020
Relevant amendments to the Labor Code and the Law on State Registration of Legal Entities and Individual Entrepreneurs entered into force. The changes will not allow the company to be liquidated before it settles its financial obligations with employees. At the same time, the employer will be able to speed up the process and charge payments for the period of new recruitment at once.
The employer can choose one of the following options:
- gradually pay the employee the average earnings for the period when he could not find a job (but not more than 3 months from the date of dismissal);
- pay off the average earnings for the second and third months at once.
The latter option will be more expensive, but will speed up the liquidation process.
This document provides general information on the subject and does not constitute a legal opinion or recommendation. Consulting a specialist is recommended before taking an action. No claim arising from the content of or relating to this document can be asserted against NAZALI.