Employer Bankrupt? Your Rights in the Netherlands

When your employer goes bankrupt, it's an extremely stressful situation. You're rightfully worried about your outstanding salary, holiday pay and other compensation. Fortunately, as an employee you're well protected under Dutch law, even during bankruptcy. There are clear rules about what happens to your wages and employment contract in the Netherlands.

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What's happening?

During bankruptcy, a trustee (curator) is appointed to handle the company's affairs. This trustee takes over all employer duties, including paying salaries. Many employees fear they'll lose their money, but this doesn't have to be the case. Dutch law specifically protects employees during bankruptcy. There are various schemes that ensure you still get paid for your worked hours.

What does Dutch law say?

Dutch law provides special protection for employees during bankruptcy. The most important is Article 40 of the Dutch Bankruptcy Act (Faillissementswet), which gives employees priority in payment. Additionally, there's the Employee Insurance Agency (UWV) that can step in under certain circumstances. Article 7:690 of the Dutch Civil Code (Burgerlijk Wetboek) also regulates what happens to employment contracts during bankruptcy.

1Article 40 Dutch Bankruptcy Act (Faillissementswet): Wages have priority in payment from the bankruptcy estate over other debts

2Article 7:690 BW (Dutch Civil Code): Employment contracts terminate automatically upon bankruptcy declaration

3Social Insurance Financing Act: UWV can provide wage guarantee if the estate falls short

What are your rights?

As an employee, you have strong rights when your employer goes bankrupt in the Netherlands. These rights ensure you won't be left empty-handed.

1Wage guarantee (loongarantie): You're entitled to payment of up to 13 weeks of outstanding wages via UWV

2Holiday pay (vakantiegeld): Accrued holiday pay is also covered by the wage guarantee scheme

3Severance pay: You may be entitled to a transition allowance (transitievergoeding) or other severance compensation

4Unemployment benefits: You automatically qualify for unemployment benefits (WW-uitkering)

What can you do now?

It's important to act quickly and take the right steps to secure your rights under Dutch law.

1Contact the appointed trustee (curator) immediately - you can find this information via the court

2Submit your claim to the trustee for all outstanding wages, holiday pay and other compensation

3Apply to UWV for wage guarantee (loongarantie) if the trustee indicates insufficient funds are available

4Seek legal help if you encounter problems or if there's uncertainty about your rights

Sample letter or template

MijnRecht.AI can help you draft an official claim with the trustee. We'll create a professional letter that correctly lists all your outstanding payments and clearly states your rights under Dutch law.

Where can you get help?

For help with employer bankruptcy in the Netherlands, you can contact: The Legal Counter (Juridisch Loket) for free legal advice, UWV for wage guarantee applications, the trustee for submitting your claim, your trade union if you're a member, and for complex cases an employment law solicitor.

Conclusion

Your employer's bankruptcy is unpleasant, but you don't need to panic. Dutch law protects employees well and there are clear procedures to get your money back. Make sure you act quickly and take all the right steps.

Frequently Asked Questions

How long does it take to receive my outstanding wages?

Will I also receive my accrued pension and holiday entitlements?

Can I still apply for unemployment benefits?

What happens if the trustee says there's no money left?

Do I still need to come to work after bankruptcy?

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