{"id":12938,"date":"2025-08-27T09:19:54","date_gmt":"2025-08-27T07:19:54","guid":{"rendered":"https:\/\/martinezsanzabogados.com\/?p=12938"},"modified":"2025-08-27T16:15:53","modified_gmt":"2025-08-27T14:15:53","slug":"when-the-worker-is-paid-in-an-insolvency-proceeding","status":"publish","type":"post","link":"https:\/\/martinezsanzabogados.com\/en\/when-the-worker-is-paid-in-an-insolvency-proceeding\/","title":{"rendered":"When does a worker get paid in an insolvency proceeding?"},"content":{"rendered":"

Like lawyers specialising in labour law<\/a> and bankruptcy in Mart\u00ednez Sanz Lawyers<\/strong>, We know that one of the main concerns of workers affected by an insolvency procedure is when they will receive their wages or severance pay<\/strong>. In this article, we explain with clarity and legal rigour when and in what form the worker can be paid<\/strong>, either through the company, the insolvency proceedings or FOGASA.<\/p>\n\n\n\n

At what point does the worker get paid within the competition?<\/strong><\/h2>\n\n\n\n

When a company is declared in insolvency proceedings (as regulated by the Texto Refundido de la Ley Concursal - TRLC (Consolidated Text of the Insolvency Act)<\/strong>), judicial proceedings are initiated to manage their insolvency. In this process, there is a rigid legal order in the way of paying any type of credit, with a radical distinction between insolvency credits (those generated before the insolvency) and credits against the mass (in principle, those arising after the declaration of insolvency). Well then, labour claims - wages and severance pay - have special protection<\/strong>, but this does not mean that collection is automatic or immediate.<\/p>\n\n\n\n

\u2705<\/strong> How do labour credits rank?<\/strong><\/h3>\n\n\n\n

The\u00a0unpaid wages<\/strong>\u00a0y\u00a0severance payments<\/strong>\u00a0are considered\u00a0preferential bankruptcy claims<\/strong>\u00a0in the amount that does not exceed the legal limit (art. 280 TRLC). This means that, once the company's available assets have been determined,\u00a0workers are among the first to be paid<\/strong>.<\/p>\n\n\n\n

However, there are certain labour credits that are against the mass (thus, those corresponding to the last thirty days of actual work performed prior to the insolvency proceedings in an amount not exceeding twice the minimum wage), which must be paid by the insolvency administration immediately (art. 242 and 245.1 TRLC).  <\/p>\n\n\n\n

\u23f0 When is it actually charged<\/strong>?<\/h3>\n\n\n\n

There are three possible moments:<\/p>\n\n\n\n

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  1. If the company is still active and liquid<\/strong>, The employer may pay the wages as they fall due, even during the insolvency proceedings, as well as the wages for the last month's salary before the insolvency proceedings. Moreover, these claims are preferential, as they must be paid immediately.<\/li>\n\n\n\n
  2. If the company cannot pay<\/strong>, The wages and compensation are incorporated into the insolvency estate and the employee must wait for the insolvency proceedings to start:\n