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💡 MCHM Lawyers - Lawyers - Bankruptcy Law 📎 Common Phase of the Bankruptcy Procedure: What Happens with Employment Contracts and Outstanding Salaries? 🏠 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 👉 Maintenance of Employment Contracts During the Common Phase of the Bankruptcy Procedure: Outstanding Salary Obligations ✨ 💬The common phase of a bankruptcy procedure represents a critical stage for companies facing financial difficulties, but also for their employees, whose labor rights may be affected. In this context, maintaining employment contracts and fulfilling salary obligations acquires crucial legal and social importance. ✍️ 📌 What Is the Common Phase of the Bankruptcy Procedure? The common phase is the initial stage of the bankruptcy process in which the debtor’s assets and liabilities are analyzed, and the claims submitted by creditors are examined. During this stage, the company may continue its operations under the supervision of the bankruptcy administrator and the bankruptcy judge. 📄 Maintenance of Employment Contracts One of the guiding principles of the bankruptcy procedure is the continuity of business activity whenever it remains viable. This means that existing employment contracts are not automatically terminated upon the declaration of bankruptcy. In fact: • Contracts remain active, unless the bankruptcy administrator requests their modification or termination for justified reasons. • The bankruptcy judge must authorize any collective termination, especially when it affects a significant number of employees. • The bankrupt company may continue hiring staff, provided that the operational need is justified and legal limits are respected. This continuity seeks to preserve the company’s value as a productive unit, facilitate its potential sale or continuation, and protect employment as much as possible. 💰 Salary Obligations During the Common Phase Even if the company is in bankruptcy, it remains obliged to meet its salary commitments. However, in practice, delays or non-payments may occur, directly affecting employees. In these cases: 1. Responsibility of the Debtor The bankrupt employer remains responsible for paying wages accrued during the common phase. These wages are considered priority claims (claims against the estate), meaning they take precedence over other bankruptcy debts. 2. Claims for Unpaid Wages Employees may take legal action to claim unpaid salaries. If non-payment persists, they may request termination of the contract due to the employer’s serious breach. Such termination may entitle them to compensation depending on the case. 3. Intervention of the Salary Guarantee Fund (FOGASA) In cases of insolvency, FOGASA may cover part of the outstanding wages and severance payments, within the limits established by law. However, its intervention usually occurs during later phases of the bankruptcy process. 4. Joint Liability in Subcontracting When the bankrupt company has subcontracted services, the principal company may be held jointly liable for unpaid wages by the contractor, particularly when it concerns essential business activities. ⚖️ Case Law and Legal Protection Spanish bankruptcy and labor law provide mechanisms to protect employees during bankruptcy proceedings. Jurisprudence has reinforced the principle of effective protection, recognizing employees’ rights to receive their wages and to be informed about any measures affecting their contracts. Furthermore, in the case of public contracts, repeated non-payment of wages may justify the termination of the administrative contract, adding further pressure on the contractor to meet labor obligations. 🧭 Conclusion Maintaining employment contracts during the common phase of the bankruptcy procedure is not only a means of preserving business activity but also a commitment to the dignity of labor. Salary obligations must be prioritized, and existing legal mechanisms allow workers to defend their rights in cases of non-payment or abuse. In an uncertain economic environment, understanding these rights and procedures is essential for companies, employees, and professionals in labor and bankruptcy law. Protecting employment and ensuring fair wage payment must remain fundamental pillars of any business restructuring process. ✨ ⚖️ Welcome to the Civil Online Process offered by MCHM Lawyers. Through our online platform, we offer you the convenience 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). 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/idiomas/en/inicio-sesion-mchmabogados-almeria [Civil], you can create a personal account or log in if you already have one. From your personal account, you will have access to all the tools necessary to complete the Civil process. Uploading Documents: From your personal account, you can upload all the necessary documents to initiate the Civil process. This includes text files, images, and any other relevant documents related to your case. Receiving Notifications and Requirements: Once you have uploaded your documents, you will receive notifications and requirements through your personal account on our online platform. These notifications will include updates on your case status, required actions, and any important communications related to your Civil process. Monitoring the Process: From your personal account, you can track the progress of your case in real time. This includes information on hearings, judicial rulings, and any other relevant updates. Communication with Your Lawyer: Through our online platform, you can directly communicate 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 has been completed, you will receive the final judgment through your personal account on our online platform. This judgment will include the court’s decision regarding your Civil case. In summary, our Civil Online Process offers you the convenience and flexibility to complete 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 can upload documents, receive notifications, communicate with your lawyer, and track your case’s progress in real time. At MCHM Lawyers, we are committed to providing you with the best possible service throughout the entire Civil process. ✨ 📖 lawyers in almeria 📍 For more information, do not hesitate to contact MCHM Lawyers. ✍️ ⚓️ employment contract, common phase, bankruptcy procedure, outstanding salary, priority claim, contract termination, unpaid wages, FOGASA, business continuity, worker protection, joint liability, bankruptcy judge, bankruptcy administrator, contract termination, labor rights

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