Receiving paycheck from firm that has declared bankruptcy

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Hello, I am writing on behalf of a very good friend who is not so well versed with German legal politics being from Brazil--she was working for a zeitarbeitsfirma, and for the last two months she has received no payments for her work after having been mailed a Kündigung at the end of January. (And I can imagine her utter frustration of having been worked like a workhorse during the holidays at the postal and logistics warehouses!) She has just now discovered these people have closed and are filing for bankruptcy, and no one will return her calls or emails.

 

Financial problems are one thing, that's their business--- but it makes my blood boil that they would deploy a bunch of temp workers out when they HAD TO they were teetering on the brink of bankruptcy, and then stiff them. Is there any kind of legal recourse she can take being that this is a German law requiring for employees to be paid the minimum wage (which is NOT €0.00)? It just concerns me that a business would try to pull something like this and get away with it...and if they can find legal maneuvers by declaring bankruptcy and absolving themselves from paying their workers in which they had a legal contract to pay, what is to say other entities won't try the same stunt of hiring people and claiming bankruptcy to avoid paying them? Debts can be written off, but completed labor wages should be a choice between EUROS or a pound of flesh. That's my opinion...sorry, I've been venting. This is bothering me.

 

What options does she have?

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8 minutes ago, Vega1981 said:

 

 

Financial problems are one thing, that's their business--- but it makes my blood boil that they would deploy a bunch of temp workers out when they HAD TO they were teetering on the brink of bankruptcy, and then stiff them.

Can't comment on the legal repercussions but leih firmas are based on making their money out of the blood of others (mainly foreigners) and are a shining example of the govts total disregard for people because in most cases when you register as unemployed that will be the 1st option given you to join a leih firma or receive no benefits.

These firms will then be happily allowed to treat you as a piece of human meat for the minimum wage (often minimum wage at the end of the day will not even be that because they will charge you for transport and many other things).

You will then be discarded when they cannot make any more money off of you and then you will go back to the arbeitsamt and they will send you to another of the seemingly 1000s of leihfirmas.

But you won't be registered as unemployed so the govt is happy to keep this practice going.

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Went through this the year after I came to Germany.

 

An employee gets paid for 3 months after the company went bust from  the Arbeitsamt just as Uncle Nick suggests :  Insolvenzgeld

Off you go to them and apply (there is a  form of course)

 

The tricky question is was your friend an employee or self employed ?

If self employed - then no  Insolvenzgeld.

 

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Wow, thanks...you guys always seem to have an answer for everything! Never heard of Insolvenzgeld, but I will be relaying that info to her ASAP.

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I would also check whether or not the Kündigung was correct, e.g. if the notice period was observed. She might be entitled to pay for some time after the last actual working day.

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http://www.arbeitsratgeber.com/insolvenzgeld-fuer-arbeitnehmer/

http://www.sozialleistungen.info/sozial-leistungen/insolvenzgeld.html

 

Basically, Insolvenzgeld is government support for employes who did not get paid by a bankrupt employer.

HOWEVER:

- The employer must have officially filed for bankruptcy (Insolvenz)

- The employee (your friend) must actively apply for Insolvenzgeld! This is not automatic, and must be done as soon as possible!

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Thanks a lot guys--this info is greatly appreciated

(And for the record, I've officially lost all respect for temp working agencies after hearing this information)

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1 hour ago, Vega1981 said:

(And for the record, I've officially lost all respect for temp working agencies after hearing this information)

 

What information? Any employer can go bankrupt and leave employees behind without paying their wages. Because of that Insolvenzgeld is not limited to temp working.

 

 

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3 hours ago, Keleth said:

Can't comment on the legal repercussions but leih firmas are based on making their money out of the blood of others (mainly foreigners) and are a shining example of the govts total disregard for people because in most cases when you register as unemployed that will be the 1st option given you to join a leih firma or receive no benefits.

These firms will then be happily allowed to treat you as a piece of human meat for the minimum wage (often minimum wage at the end of the day will not even be that because they will charge you for transport and many other things).

You will then be discarded when they cannot make any more money off of you and then you will go back to the arbeitsamt and they will send you to another of the seemingly 1000s of leihfirmas.

But you won't be registered as unemployed so the govt is happy to keep this practice going.

THIS information!!!

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