Photo: Marie Birkl.
The County Administrative Board is responsible for paying the wage guarantee to employees of a company which goes bankrupt or is undergoing a reorganisation. This is done after the decision of the bankruptcy trustee or the administrator.
What does a bankruptcy or a corporate reorganization mean for workers?
If you are an employee of a company that goes bankrupt or undergoes corporate restructuring you are covered by the Wage Guarantee Act. That means you can receive compensation for wages or similar that the employer owes you.
When a company is declared bankrupt or will undergo a reconstruction, the district court appoints a bankruptcy trustee or administrator, who decides which persons are entitled to the guarantee and the amounts to be paid. After the County Administrative Board has received a written decision from the bankruptcy trustee or the administrator they pay the wage guarantee.
The wage guarantee also means you can receive your severance pay during the notice period (1-6 months) as stated in the LAS (Employment Protection Act SFS 1982: 80). You must be registered as a jobseeker at the employment service (Arbetsförmedlingen). The maximum amount of wage guarantee is limited to four price base amounts (in 2014, this amounted to SEK 177,600).