Directors’ liability for non-payment of employee entitlements in case of insolvency of employer Cover Image

Odgovornost direktora za neisplaćena potraživanja zaposlenih u slučaju stečaja poslodavca
Directors’ liability for non-payment of employee entitlements in case of insolvency of employer

Author(s): Aleksandra Višekruna
Subject(s): Civil Law
Published by: Institut za uporedno pravo
Keywords: insolvency; employees; protection mechanisms; liability of directors

Summary/Abstract: The opening of insolvency procedures undoubtedly causes significant consequences for those who are related with the debtor. Majority of legislators recognise employees as particularly vulnerable category of creditors in insolvency. This paper will briefly summarise employee protection mechanisms in insolvency (priorities in payment order and guarantee institutions for payment of accrued entitlements). The central part of the paper will deal with directors’ liability for non-payment of employee entitlements in case of insolvency. The paper will review Canadian company legislation which introduces liability of directors for non-payment of employee entitlements and Australia which reformed its company law to introduce special norms aimed at better protection of employees’ interests.

  • Issue Year: 2016
  • Issue No: 3
  • Page Range: 77-89
  • Page Count: 13
  • Language: Serbian