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💡 MCHM Lawyers - Lawyers - Bankruptcy Law 📎 Impact of Bankruptcy on Employment Contracts: Suspension and Termination 🏠 https://www.mchmabogados.es/idiomas/en/ 🔗 https://www.mchmabogados.es/idiomas/en/abogados-derecho-concursal-almeria ⚖️ Lawyers in Almería 📞 950 106 453 / 674 21 65 59 📧 info@mchmabogados.es 👉 Effects of Bankruptcy on Employment Contracts: Suspension and Termination 💬 The declaration of bankruptcy of a company has significant implications for employment contracts, affecting both suspension and termination. In this article, we will explore these effects in detail and the rights of workers in such situations. ✍️ Suspension of Employment Contracts One of the first effects of declaring bankruptcy is the possibility of suspending employment contracts. This measure can be requested by the bankruptcy administration or the company itself and must be approved by the bankruptcy judge. Suspension does not terminate the employment relationship, but it means the employee stops providing services, and consequently, the company´s obligation to pay wages ceases. During this period, employees may access unemployment benefits. For collective suspension to be approved, certain criteria must be met: • Existence of economic difficulties that justify the measure. • Justification of the need for suspension to ensure the continuity of the business. • Evaluation of the impact on employees and possible less burdensome alternatives. • Analysis of the future viability of the company and the possibility of reintegrating employees. Termination of Employment Contracts Termination of employment contracts in the context of bankruptcy may occur for various reasons, including company liquidation. The bankruptcy administration may request the termination of contracts if it considers the continuation of business activity is not viable. This request must be approved by the bankruptcy judge. In case of termination, workers have the right to receive corresponding indemnities. These indemnities are considered credits against the mass, meaning they have priority in payment over other bankruptcy credits. Additionally, the Wage Guarantee Fund (FOGASA) may intervene to pay the wages and indemnities that have not been paid by the company. Workers´ Rights Workers affected by bankruptcy proceedings have several rights protected by law: • Right to information and consultation: Employee representatives must be informed and consulted about decisions that affect employment contracts. • Right to indemnity: In case of contract termination, workers are entitled to receive the corresponding indemnities. • Right to unemployment benefits: During the suspension of contracts, workers may access unemployment benefits. • Right to FOGASA protection: FOGASA guarantees the payment of wages and indemnities in case of company insolvency. Conclusion The declaration of bankruptcy of a company has significant effects on employment contracts, impacting both their suspension and termination. It is crucial for workers to know their rights and the legal protections available to them in such situations. The law seeks to balance the economic viability of the company with the protection of workers´ rights, ensuring they receive the compensations and benefits they are entitled to. ✨ ⚖️ Welcome to the Online Bankruptcy Process offered by MCHM Lawyers. Through our online platform, we provide the convenience of completing the entire process from the comfort of your home, without the need to visit our office or courts (except for mandatory procedures). Below, we will guide you through each step of the process: Access to Your Personal Account: Once you access our website https://www.mchmabogados.es/inicio-sesion-mchmabogados-almeria [Bankruptcy], you can create a personal account or log in if you already have an existing account. From your personal account, you will have access to all the necessary tools to complete the Bankruptcy process. Uploading Documents: From your personal account, you can upload all the necessary documents to start the Bankruptcy process (including documents relevant to your case). Receiving Notifications and Requests: Once you have uploaded your documents, you will receive notifications and requests through your personal account on our online platform. These notifications will include information about the status of your case, any actions required from you, and any important communications related to your Bankruptcy process. Tracking the Process: From your personal account, you can track the progress of your case in real-time. This includes information about hearings, court rulings, and any other relevant updates. Communication with Your Lawyer: Through our online platform, you will have the ability to communicate directly with your assigned lawyer. You can ask questions, make inquiries, and receive personalized legal advice at any time during the process. Receiving the Judgment: Once the process is complete, you will receive the final judgment through your personal account on our online platform. This judgment will include any decisions made by the court regarding your Bankruptcy case. In summary, our Online Bankruptcy Process offers you the convenience and flexibility of completing the entire procedure from the comfort of your home, without the need to visit our office or the courts (except for mandatory procedures). With access to your personal account on our online platform, you will be able to upload documents, receive notifications, communicate with your lawyer, and track the progress of your case in real-time. At MCHM Lawyers, we are committed to providing you with the best possible service throughout the Bankruptcy process. 📖 lawyers in almeria 📍 For more information, feel free to contact MCHM Lawyers. ✍️ ⚓️ Suspension of contracts, termination of contracts, labor rights, indemnity, unemployment benefits, FOGASA, bankruptcy proceedings, workers´ protection, bankruptcy administration, business viability.

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