Friday , 19 May
17:45 - 19:00
Hall #1, General Staff Building (6-8, Dvortsovaya sq.)
Track: International Insolvency Forum
Enforcement of workers’ rights is the most acute issue in a bankruptcy. Workers are a driving force of a company. They are interested in preserving the business like no one else. Yet they are most vulnerable to financial difficulties of the company, more than other creditors, because often a worker’s salary is the only source of income for his or her family.
The problem of non-payment of salaries by a bankrupt company differs from country to country. Somewhere it is a very common and complicated problem because it directly depends on economic situation in the country and activity of the workers themselves due to traditional relations between workers and employers. In other countries the problems of salary non-payment are less acute in particular due to the efforts of various workers’ associations defending the workers’ rights and hardline stance of public authorities immediately reacting to non-payment of salary. Yet like bankruptcy itself, salary arrears still actually happen. And this means that the topic of workers’ right protection in bankruptcy is relevant for all the states in the world.
There are some international instruments aimed at protecting the workers’ rights (for instance, conventions and recommendations of the International Labour Organization). National legislations also include special norms dedicated to ensuring the workers’ demands. Establishment of a preferential debts regime for salary arrears and special guarantee institutions are main wage security tools in bankruptcy.
The session dedicated to the protection of workers’ rights in case of employer’s bankruptcy will discuss the mechanisms used in various countries to achieve this goal. What is the progress of guarantee funds in the countries where they exist? What are the primary recent achievements in guaranteeing the workers’ right in bankruptcy?
The discussion will gravitate around the question of what is better, after all: priority of satisfaction of creditors’ claims or a guarantee institution?
Professor, Martin-Luther-University Halle-Wittenberg
Chairman, Fund of Social Insurance of the Russian Federation
Chief Justice, Supreme Court and Constitutional Court of Zimbabwe
Partner, Attorneys at Law Bojovic & Partners
Secretary of State - Deputy Minister, The Ministry of Labour and Social Protection
Deputy Director Организация: Department of Sanation and Bankruptcy, Ministry of Economy
* The Programme may be subject to change