Early warning signs of impending insolvency
Bankruptcy rarely comes as a surprise – financial problems are often heralded by certain signals:
- Delayed or non-payment of wages
- Delays in payments to suppliers or outstanding debt collection proceedings
- Too little work
Your rights in the event of minus hours and absences from work
Is work becoming scarce or is the employer ordering minus hours? In times of crisis, many companies try to cut costs in the short term.
This is what the law says:
- Minus hours ordered by the employer are only permitted with your express consent.
- According to Art. 324 of the Swiss Code of Obligations (OR), the employer must pay wages even if it is unable to assign work for economic reasons (so-called default of acceptance).
- The obligation to make up the minus hours is also inadmissible.
What you can do:
- Explicitly offer your work performance – ideally in writing. This way, your wage entitlements remain intact.
Wages are not paid: Your rights and steps
If the salary does not arrive or arrives late, it is crucial to act quickly. Don’t be fobbed off with promises
Your options:
- Send a reminder for late payment
Demand the outstanding wages in writing and set a reasonable deadline (e.g. 5-10 days). - Demand securities
You may demand security for future wages, e.g. a bank guarantee (Art. 337a OR). - Refusing work
If wages are not paid, you may stop work – after issuing a written warning and setting a deadline for payment - Termination without notice in the event of insolvency
You may even be able to terminate the contract without notice. However, the conditions are very strict – it is best to seek advice on this. - Initiate debt enforcement proceedings
You can initiate debt enforcement proceedings for unpaid wages at the relevant debt enforcement office. This may give you a better position with regard to wage claims – especially in the event of bankruptcy.
Employer bankruptcy: what now?
If bankruptcy proceedings are opened, employees may be entitled to insolvency compensation benefits from unemployment insurance.
Tip: Contact the relevant unemployment insurance fund in good time. Further information is also available from SECO (State Secretariat for Economic Affairs).
Conclusion: Know your rights and act early
Whether it’s a delayed salary, sudden job cuts or the threat of bankruptcy – for employees, quick, informed action is crucial. There are also various stumbling blocks. Protect your rights and seek legal advice before the situation escalates.
Do you need legal support in the event of outstanding wages or termination without notice due to inability to pay?
Our experienced lawyers will be happy to assist you if you need support in the area of employment law.