Employees May Petition for Bankruptcy When Salaries Are Paid Late Beyond the Statutory Limit

Employees have the right to petition for bankruptcy proceedings against an enterprise when 03 months have passed from the date the obligation to pay salaries and other debts owed to employees became due, and the enterprise has failed to perform the payment obligation (Article 5 of the Law on Recovery and Bankruptcy No. 142/2025/QH15, effective from 01/3/2026).

1. Who May Petition for Bankruptcy Proceedings?

Under Article 5 of the Law on Recovery and Bankruptcy 2025, the following persons have the right to petition for bankruptcy proceedings:

• Unsecured creditors and partially secured creditors: when 03 months have passed from the date a debt became due and the enterprise or cooperative has failed to perform the payment obligation;
• Employees, grassroots trade unions, and immediate upper-level trade unions at workplaces where no grassroots trade union has been established: when 03 months have passed from the date the obligation to pay salaries and other debts owed to employees became due and the enterprise or cooperative has failed to perform the payment obligation;
• Shareholders, groups of shareholders, and cooperative members as prescribed by law.

2. When Is the Legal Representative Obliged to File a Petition?

The legal representative of an enterprise or cooperative has an obligation to file a petition for bankruptcy proceedings when the enterprise or cooperative becomes insolvent.

3. Dossier and Where to File

An employee’s petition for bankruptcy proceedings must clearly state the petitioner’s information, the information of the enterprise being petitioned against, the basis for the enterprise’s insolvency (late salary payment, arrears exceeding 03 months), and supporting documents. The petition is filed with the competent People’s Court under the Law on Recovery and Bankruptcy 2025.

Notes on Application

The Bankruptcy Law 2014 expired on 01/3/2026 and has been replaced by the Law on Recovery and Bankruptcy 2025. Employees should note that the “03 months” rule is the time-limit condition for the right to petition to arise, and they need to prepare sufficient evidence of the labor relationship and the late salary payment.

Common Risks to Note

• Filing a petition before the 03-month period has expired;
• Lacking evidence proving the enterprise owes salaries or is insolvent;
• Confusing bankruptcy proceedings with individual labor disputes (suing for unpaid wages).

How Can ANT Legal Help?

ANT Legal supports employees and trade unions in assessing the grounds for petitioning for bankruptcy proceedings, preparing dossiers, and protecting their rights during the bankruptcy process. For advice, please contact an ANT Legal lawyer.

Related Articles

• Order and Procedures for Dissolving a Private Enterprise under a Court Decision
• If a Company Owes Social Insurance Contributions and Goes Bankrupt, Are Employees’ Rights Guaranteed?