Entities in the market have been facing insolvency for many years. These are the events in which the debtor’s economic situation is so bad due to internal or external factors that they are unable to cover their long-term and short-term liabilities. The thesis will focus on cases in which insolvent entities are employers and on the status and rights of employees whose employment is at risk. The aim will be to examine the situation of employees in case of the employer’s insolvency over the past ten years as the number of insolvency proceedings has been increasing due to the economic crisis.
However, the opinion that the opening of a certain insolvency proceeding terminates the employment relationships of all employees has been changed. The fact that the employer is subject to any of the insolvency proceedings does not seem to be a sufficient reason to terminate the contracts of employment. According to international, regional and national sources of law, the termination must be supported by a serious or valid reason explained by the person who, in that specific case, wishes to terminate the contract. The employees are also entitled to other rights, such as severance pay, compensations and unemployment allowances.
The claims of employees against their insolvent employers present a particularly relevant field of law. These claims are given specific protection due to tradition as the employee is the weaker party in the employment relationship. The protection of workers’ claims is ensured by the right of pre-emption and a specific public guarantee institution. Slovenia regulated both forms of protection of workers’ claims in the national legislation, making it the country with a combined legal system.
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