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Old 28.08.2014, 13:52
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Company in liquidation, what now?

My son just told me that his boss announced today that their company is bankcrupt and no salaries will be paid this month (nice to do so AFTER everybody has worked the entire month!). However the employees were told they would probably start a new company and all would be hired by that company. My questions are:
1) Is my son obliged to sign an employment contract with that new company?
2) Is there still a notice period even if the company is liquidated? So, does my son have to give formal notice and work it although he has no hope of getting paid?

My gut feel is that he should get out of there, go to the RAV to apply for unemployment and look for a new job asap but then perhaps he has broken his contract and the RAV would not be interested?

All positive advice would be very gratefully received.
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Old 28.08.2014, 13:58
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Re: Company in liquidation, what now?

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My son just told me that his boss announced today that their company is bankcrupt and no salaries will be paid this month (nice to do so AFTER everybody has worked the entire month!). However the employees were told they would probably start a new company and all would be hired by that company. My questions are:
1) Is my son obliged to sign an employment contract with that new company?
2) Is there still a notice period even if the company is liquidated? So, does my son have to give formal notice and work it although he has no hope of getting paid?

My gut feel is that he should get out of there, go to the RAV to apply for unemployment and look for a new job asap but then perhaps he has broken his contract and the RAV would not be interested?

All positive advice would be very gratefully received.
This apparently seems to be a fairly common practice in Switzerland.

It seems to be done to allow company directors to carry on trading, albeit with a company with a slightly different name, but relieves them of some of their repayment burden.

(I'm not saying it's the same in this case though it could be).

I'd check the new contract carefully and request that a lump sum of last month's pay is added as a gesture of good will.
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Old 28.08.2014, 13:59
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Re: Company in liquidation, what now?

Excellent idea, thanks Tom!
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Old 28.08.2014, 14:23
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Re: Company in liquidation, what now?

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My son just told me that his boss announced today that their company is bankcrupt and no salaries will be paid this month (nice to do so AFTER everybody has worked the entire month!). However the employees were told they would probably start a new company and all would be hired by that company. My questions are:
1) Is my son obliged to sign an employment contract with that new company?
2) Is there still a notice period even if the company is liquidated? So, does my son have to give formal notice and work it although he has no hope of getting paid?


My gut feel is that he should get out of there, go to the RAV to apply for unemployment and look for a new job asap but then perhaps he has broken his contract and the RAV would not be interested?

All positive advice would be very gratefully received.
1) No. Your son has the choice of whether to work for a new company or not
2) No would be my gut feeling. If there's no pay and the company he works for is bankrupt then the company have effectively broken their contract with him. There is no more contract left to break.

This word "probably" as in probably start a new company sets my alarm bells ringing. Call my cynical but that sounds just like a carrot on a stick to keep people working for no pay through the wind up process in the hope there'll be a job at the end of it, but no new company actually materialises.

I'd tell him to get his arse down to the RAV and field it with them. I also believe there is a government compensation that pays the legal minimum notice period in such events, but somebody else will need to confirm that.
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Old 28.08.2014, 14:31
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Re: Company in liquidation, what now?

Also, check AHV and Pension Fund if premiums have been paid.
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Old 28.08.2014, 14:31
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Re: Company in liquidation, what now?

He should go and talk to his Union for advice.
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Old 28.08.2014, 17:28
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Re: Company in liquidation, what now?

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Also, check AHV and Pension Fund if premiums have been paid.
It almost certainly won't have been, however it's insured as is the last 3 months pay. I have had this situation before, it's not uncommon. The money will get credited eventually.

If you turn down a job at the new company don't expect any RAV payments for a very long time, as you are legally required to take any suitable work offered even if the salary is slightly lower (70% without having children 80% if you have children. RAV is insurance against loosing a job, you have to reduce any insurance payout.
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Old 28.08.2014, 17:39
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Re: Company in liquidation, what now?

first thing your son should do is insist upon his salary. it has been quite some time since I dealt with it, but I believe up to 6 months' salary of employees are the first debt required to be paid under Swiss insolvency law. he should then ask for information from his employer regarding the specifics of the bankruptcy, to confirm the employer is legally filing for insolvency protection as opposed to simply shutting its doors and stiffing some of its creditors.
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Old 28.08.2014, 17:52
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Re: Company in liquidation, what now?

I have been in a similar situation before. My previous employer had filed for Liquidation and the administrators had taken over the company.

The administrator had taken over end of Jan and we were not paid the salary for Jan. The unemployment office paid our salaries for Jan around mid of Feb, what I heard those days were that the canton has a separate liquidation insurance to cover for the salaries of employees for upto 3 months. This is in case the administrators are not in a position to pay the pending salaries.

After a month in administration, the administrator provided a new contract to all employees with the salaries being the same and notice period reduced. From Feb onwards the salary were paid by the administrators.
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Old 28.08.2014, 19:44
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Re: Company in liquidation, what now?

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My son just told me that his boss announced today that their company is bankcrupt and no salaries will be paid this month (nice to do so AFTER everybody has worked the entire month!). However the employees were told they would probably start a new company and all would be hired by that company. My questions are:
1) Is my son obliged to sign an employment contract with that new company?
2) Is there still a notice period even if the company is liquidated? So, does my son have to give formal notice and work it although he has no hope of getting paid?

My gut feel is that he should get out of there, go to the RAV to apply for unemployment and look for a new job asap but then perhaps he has broken his contract and the RAV would not be interested?

All positive advice would be very gratefully received.
Really, a public Web forum is not the place to go for legal advice. Insolvency (something I have professional competence in) is highly law- (and so country-)specific. Start here, with an official outline of rights: http://www.espace-emploi.ch/dateien/...F_2011_web.pdf And then, as others have said, get professional advice and go to the relevant government employment office.

I personally would not work for a resuscitated company that previously closed down owing me salary. My daughter was strung along by a guy (in the UK) later put into criminal bankruptcy and who now is in prison. She lost months of salary and, worse, lost the right to maternity pay.

It all depends, of course, on what (if any) jobs are on offer and your employment rights. My daughter has her application in for Swiss facilitated naturalisation.
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Old 28.08.2014, 19:57
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Re: Company in liquidation, what now?

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Really, a public Web forum is not the place to go for legal advice
Of course you're right, but most posts of this ilk are more about getting opinions and suggestions rather all out legal advice. You can be sure that when a complicated situation arises most members will reply with "contact a lawyer"
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Old 28.08.2014, 20:11
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Re: Company in liquidation, what now?

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My son just told me that his boss announced today that their company is bankcrupt and no salaries will be paid this month (nice to do so AFTER everybody has worked the entire month!). However the employees were told they would probably start a new company and all would be hired by that company. My questions are:
1) Is my son obliged to sign an employment contract with that new company?
2) Is there still a notice period even if the company is liquidated? So, does my son have to give formal notice and work it although he has no hope of getting paid?

My gut feel is that he should get out of there, go to the RAV to apply for unemployment and look for a new job asap but then perhaps he has broken his contract and the RAV would not be interested?




All positive advice would be very gratefully received.

Tell your son to pack his belongings and go home and apply for pogey .No pay no work .
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Old 28.08.2014, 21:32
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Re: Company in liquidation, what now?

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Really, a public Web forum is not the place to go for legal advice. Insolvency (something I have professional competence in) is highly law- (and so country-)specific. Start here, with an official outline of rights: http://www.espace-emploi.ch/dateien/...F_2011_web.pdf And then, as others have said, get professional advice and go to the relevant government employment office.



I personally would not work for a resuscitated company that previously closed down owing me salary. My daughter was strung along by a guy (in the UK) later put into criminal bankruptcy and who now is in prison. She lost months of salary and, worse, lost the right to maternity pay.



It all depends, of course, on what (if any) jobs are on offer and your employment rights. My daughter has her application in for Swiss facilitated naturalisation.

In the UK you won't get your salary paid, here you will & will loose unemployment pay by turning down the new companies offer, so it would seem to be poor advise at best.
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Old 01.09.2014, 09:16
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Re: Company in liquidation, what now?

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My son just told me that his boss announced today that their company is bankcrupt and no salaries will be paid this month (nice to do so AFTER everybody has worked the entire month!). However the employees were told they would probably start a new company and all would be hired by that company. My questions are:
1) Is my son obliged to sign an employment contract with that new company?
2) Is there still a notice period even if the company is liquidated? So, does my son have to give formal notice and work it although he has no hope of getting paid?

My gut feel is that he should get out of there, go to the RAV to apply for unemployment and look for a new job asap but then perhaps he has broken his contract and the RAV would not be interested?

All positive advice would be very gratefully received.
I spoke to someone over the weekend who`d been thru a similar situation (Swiss person, qualified trade employee).

Salaries are considered "holy" and will be paid, maybe up to 3 months late, but will be paid after the liquidation process is finalised.

By going into liquidation the employer has nullified his workers contracts, so they have no obligation to work notice periods. They are free to apply to RAV for compensation. They have no obligation to resume employment with the owners of their previous firm - due to conduct of that firm.

Usually the "new" salaries will be lower than their previous salary, only those truly desperate for employment would want to voluntarily sign on again with same owners.
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