In the case of collective layoffs as a result of bankruptcy or insolvency of a company, workers receive a closing-down indemnity paid by a closing fund managed by the public employment services.

The employment contract must be terminated 12 months before to 13 months after the closing in order to receive guarantees in case of employer’s insolvency.

There are no exclusions of part-time or fixed-term workers.

The fund will intervene in the payment of wages due and indemnities and benefits that are due. 

For companies closing after 1 June 2016, the redundancy amounts to €156.88 for each year of seniority in the company. In order to take into account the personal situation of the employees, an additional premium is available for employees over 45 years old. For each year above 45, they were active in the current company they will receive an additional €156.88.

The fund is financed through social security contributions by the employer levied on the gross salary of employees.

Payment will be realised also if the employer does not contribute.