Do employees have the right to file a request to open bankruptcy proceedings when the enterprise is late in paying salaries?

Do employees have the right to file a request to open bankruptcy procedures for businesses?

According to Article 5 of the 2014 Bankruptcy Law, it is stipulated that people have the right and obligation to file a request to open bankruptcy procedures as follows: as follows:

– Unsecured creditors and partially secured creditors have the right to file a request to open bankruptcy proceedings at the end of 03 months from the due date of the debt and the enterprise or cooperative fails to fulfill its payment obligations.

– Employees, grassroots trade unions, and direct superior grassroots unions in places where grassroots unions have not yet been established have the right to file a request to open bankruptcy procedures at the end of 03 months from the date on which the obligation to pay salaries and other debts due to employees are due and the enterprise or cooperative fails to fulfill its payment obligations.

– The legal representative of an enterprise or cooperative is obliged to file a request to open bankruptcy proceedings when the enterprise or cooperative becomes insolvent.

– The owner of a private enterprise, the Chairman of the Board of Directors of a joint stock company, the Chairman of the Board of Members of a limited liability company with two or more members, the owner of a one-member limited liability company, and general partners of a partnership are obliged to file a request to open bankruptcy procedures when the enterprise becomes insolvent.

– A shareholder or group of shareholders owning 20% ​​or more of common shares for at least 6 consecutive months has the right to file a request to open bankruptcy procedures when the joint stock company becomes insolvent. A shareholder or group of shareholders owning less than 20% of common shares for at least 6 consecutive months has the right to file a request to open bankruptcy proceedings when the joint stock company becomes insolvent in cases where the company’s Charter stipulates.

– Cooperative members or legal representatives of cooperatives and members of cooperative unions have the right to file a request to open bankruptcy procedures when the cooperative or cooperative union becomes insolvent.

Accordingly, employees have the right to file a request to open bankruptcy proceedings if the enterprise has delayed paying salaries for 3 months or more from the date of expiration of the salary payment period. Therefore, you can completely exercise this right.

Do employees who file a request to open bankruptcy proceedings have to pay bankruptcy fees and advance bankruptcy costs?

According to Article 22 of the Bankruptcy Law 2014, the regulations on payment of bankruptcy fees are as follows:

The applicant requesting to open bankruptcy procedures must pay bankruptcy fees in accordance with the law on court fees and People’s Court fees. However, the following cases do not have to pay bankruptcy fees:

+ Workers or organizations related to workers.

+ People who have the obligation to file but do not have enough money to pay bankruptcy fees.

In addition, these cases do not have to pay bankruptcy costs or advance bankruptcy costs as prescribed in Article 23 of this Law. In short, as an employee who files a request to open bankruptcy proceedings, you do not have to pay bankruptcy fees and advance bankruptcy costs.

What content does an employee’s petition to open bankruptcy proceedings include?

Article 27 of the Bankruptcy Law 2014 regulates an employee’s petition to open bankruptcy proceedings as follows:

– When requesting the People’s Court to open bankruptcy proceedings, employees and trade union representatives specified in Clause 2, Article 5 of this Law must make a request to open bankruptcy proceedings.

– A request to open bankruptcy procedures must have the following main contents:

+ Day, month, year;

+ Name of the People’s Court with jurisdiction to resolve bankruptcy;

+ Name and address of the applicant;

+ Name and address of the enterprise or cooperative requested to open bankruptcy procedures;

+ The total amount of wages and other debts that are due but the enterprise or cooperative does not pay the employee.

Attached to the application must be evidence to prove salary and other debts due

– In case there is a proposal to appoint an asset administrator or asset management and liquidation enterprise, the petition to open bankruptcy procedures must clearly state the name and address of the asset administrator or asset management and liquidation enterprise.

– From the date of application, employees and union representatives have the same rights and obligations as creditors according to the provisions of this Law.The above are our advice for your case. Accordingly, employees can completely file a request to open bankruptcy proceedings if they are delayed in paying salaries within the time limit prescribed by law.