Do employees have the right to file a request to open bankruptcy proceedings? What content does an employee’s petition to open bankruptcy proceedings include?

When is a business considered bankrupt?

According to Clause 2, Article 4 of the Bankruptcy Law 2014, the concept of bankruptcy is defined as follows:

“2. Bankrupt is the situation in which enterprises and cooperatives become insolvent and are declared bankrupt by the People’s Court.”

Thus, an enterprise is considered bankrupt when it meets both of the following conditions:

– The enterprise becomes insolvent;

– Declared bankrupt by the People’s Court.

Do employees have the right to file for bankruptcy proceedings?

Pursuant to Clause 2, Article 5 of the Bankruptcy Law 2014, regulations on this issue are as follows:

“2. 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 proceedings at the end of 3 months from the date of payment of salaries and other debts due to employees that the enterprise or cooperative does not fulfill its payment obligations.”

Accordingly, employees have the right to file a request to open bankruptcy proceedings after the expiration of 3 months from the date of payment obligation but the enterprise fails to do so.

So, according to the information you provided, your business has owed you more than 4 months of unpaid wages. Therefore, in this case you have the right to file a request to open bankruptcy proceedings for the business.

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

According to Article 27 of the 2014 Bankruptcy Law, the content of a petition to open bankruptcy procedures is specified as follows:

“1. 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.

2. The application to open bankruptcy procedures must have the following main contents:

a) Day, month, year;

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

c) Name and address of the applicant;

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

d) Total amount of wages and other debts due that the enterprise or cooperative does not pay to employees.

Attached to the application must be evidence to prove that the salary and other debts are due. term.

3. 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.”

Thus, the employee’s petition to open bankruptcy procedures includes 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 that is required 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.

– 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 and asset management and liquidation enterprise.

Note: The application must have evidence to prove salary and other debts due.

Do employees who apply to open bankruptcy procedures have to pay bankruptcy fees?

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

“Article 22. Bankruptcy fees

The applicant requests to open bankruptcy procedures must pay bankruptcy fees in accordance with the law on court fees and People’s Court fees. In case the applicant specified in Clause 2, Article 5 and Point a, Clause 1, Article 105 of this Law is not required to pay bankruptcy fees.”

Thus, if an employee files a request to open bankruptcy proceedings at the end of the 3-month period from the date of payment obligation but the enterprise fails to do so, the employee does not have to pay bankruptcy fees.