Protection of workers' wage claims in enterprise insolvency

Wages paid for hours worked is at the core of any employment relationship between a worker and employer. However, when enterprises encounter financial or economic difficulties, worker wages can be placed in jeopardy. If these difficulties are too overwhelming, in the worst case, enterprises may go into insolvency/bankruptcy. This can lead to significant concerns about outstanding wages that were not paid to workers at the time of the enterprise insolvency/bankruptcy. This factsheet provides an international overview of approaches taken to address the protection of workers' wages claims in the event of enterprise insolvency/bankruptcy.