Company insolvent: The checklist for jobs, wages, and deadlines

Salary is late, suppliers are at the door, or management informs you about insolvency proceedings: For employees, this situation quickly creates existential pressure. Nevertheless, acting in haste is risky. Insolvency does not automatically terminate the employment relationship, outstanding claims are not paid out by themselves, and a premature resignation or unexcused absence can worsen your own position.

If the Employer insolvent in Austria, the Insolvency Remuneration Fund (IEF) protects many claims arising from the employment relationship. However, for this to happen, claims must be correctly determined, registered with the insolvency court, and applied for at IEF-Service GmbH. This guide shows what needs to be done immediately, which documents count, and when the Chamber of Labour (Arbeiterkammer), the Insolvency Protection Association, and the Public Employment Service (AMS) should be involved.

The most important rules in 60 seconds

The opening of insolvency proceedings does not automatically end the job.
As long as the employment relationship is active, you must generally continue to work.
Outstanding claims prior to the opening of insolvency must be registered in the proceedings and applied for at the IEF.
The application for insolvency remuneration must generally be submitted within six months.
Employment contract, pay slips, time records, bank statements, and vacation balance should be secured immediately.
Resigning or leaving prematurely should never be done without individual legal advice on labor law.
If the job ends, the application for unemployment benefits is necessary at the latest on the first day of unemployment.

This sequence is more important than hectic individual actions: check the official status of the proceedings, continue working correctly, secure evidence, get advice, and submit claims on time.

Is the company really insolvent or just in payment difficulties?

A late salary is a serious warning signal, but not yet proof of opened insolvency proceedings. Insolvency remuneration requires a legal insolvency event, such as a court opening or certain cases where the opening is rejected due to lack of assets. Rumors in the company, a lack of orders, or a letter from a supplier do not replace this formal step.

The official status can be checked free of charge in the Ediktsdatei (Edict File) of the Austrian judiciary. The insolvency edict contains, among other things, the court, the case number, the type of proceedings, the insolvency administration, as well as important dates and deadlines. Save a printout or a PDF copy and note the date of publication.

If no proceedings have been opened yet, outstanding payments should be demanded in writing and in a provable manner. Due to possible collective agreement or contractual limitation periods, early advice is important. Do not wait months for the situation to resolve itself.

What happens to the employment relationship?

The central message is: The employment relationship remains in place despite the opening of insolvency. In bankruptcy or reorganization proceedings without self-administration, the insolvency administrator appointed by the court generally takes over the employer function. In reorganization proceedings with self-administration, special rules apply.

Employees must therefore continue to show up for work and fulfill their contractual duties as long as they do not receive any other binding instruction or effective termination. Anyone who simply stays at home out of fear risks labor law consequences. Likewise, one should not resign based on a rumor.

Whether the business is continued, sold, downsized, or closed is decided during the proceedings. A continuation can preserve jobs; however, it does not guarantee that every employment relationship will remain. If a company or part of a business is taken over, the rules on the transfer of undertakings may also become relevant. For this, jobspot offers the guide When the business is sold.

Which claims the Insolvency Remuneration Fund secures

The Insolvency Remuneration Fund serves to secure the livelihood of employees when an insolvent employer can no longer pay outstanding claims. According to the Insolvency Remuneration Protection Act, eligible persons include employees, apprentices, certain freelance workers, and home workers.

Typical secured claims can include:

outstanding wages or salary,
pro-rata special payments such as vacation and Christmas bonuses,
overtime, extra work, and surcharges,
unreimbursed professional expenses,
vacation compensation upon termination,
severance pay in lieu of notice,
certain severance claims and
certain costs of legal enforcement.

Whether and to what extent a claim is secured depends on the due date, the type of claim, the labor law basis, statutory upper limits, and the specific course of the employment relationship. IEF-Service GmbH checks the application and decides by official notice. A flat-rate calculation based on the last net salary is not sufficient.

Two deadlines that are often confused

The application deadline for the IEF

The application for insolvency remuneration must generally be submitted within six months of the opening of insolvency proceedings pursuant to Section 6 of the IESG. For certain other insolvency events, the period begins upon knowledge of the corresponding decision. Anyone who misses this may lose claims. The date in the edict should therefore be entered into the calendar immediately.

The secured period for older remuneration claims

A distinction must be made here regarding how far back outstanding remuneration claims go before the cut-off date. Section 3a of the IESG refers to the last six months for many remuneration claims. For older claims, it can be decisive whether they were asserted in court or in permissible proceedings in a timely manner and pursued further.

In practice, this means: The six-month application period does not automatically allow you to claim unpaid salaries that are arbitrarily old. Anyone who has not received full remuneration for a long time before the insolvency should have their documents checked immediately by the Chamber of Labour or the trade union.

The seven-step checklist after the opening of insolvency

1. Secure edict and contact persons

Note the company name, court, case number, opening date, registration deadline, reporting hearing, and contact details of the insolvency administration. Do not rely solely on a circular email in the company. Changes in the proceedings are also published in the insolvency file.

2. Offer work performance correctly

Continue to show up for work and document if the business is closed or you are not admitted. Offer your work performance in a provable manner and seek legal advice. Verbal instructions regarding leave, vacation, or time off in lieu should be confirmed in writing.

3. Create a complete folder of documents

Save documents outside of company devices and accounts, as far as this is lawful and possible without taking trade secrets. Personal labor law evidence belongs in the folder, not customer data or internal confidential files.

Important items include in particular:

employment contract and service note,
applicable collective agreement and classification,
the last wage or salary statements,
bank statements with actual payments,
your own working time and overtime records,
vacation and time credits,
receipts for outstanding expenses and outlays,
correspondence regarding outstanding payments,
termination, resignation declaration, or other termination documents and
the insolvency edict including the case number.

Clean time records are particularly valuable if overtime or time off in lieu is outstanding. The jobspot guide Record working time explains which information helps in everyday life.

4. Have claims calculated professionally

Gross remuneration, special payments, surcharges, vacation, and termination claims are interrelated. The Chamber of Labour supports those affected via the Insolvency Protection Association for Employees, or ISA for short. This can calculate claims, carry out the judicial registration of claims, and represent you at the IEF.

This service prevents typical errors such as incorrect periods, missing surcharges, or an incorrect tax and social security calculation. Contact the Chamber of Labour of the federal state in which you are employed as early as possible.

5. Register claim with the court

Outstanding claims prior to the opening of insolvency are insolvency claims. They must be registered with the competent insolvency court. The edict states the registration deadline and the examination date. If represented by the ISA, the necessary steps are coordinated.

6. Apply for insolvency remuneration

The IEF application is not made automatically with the opening of insolvency. It can be submitted by yourself or through an authorized representative. IEF-Service GmbH offers electronic application; this requires an electronic signature with ID Austria. Missing documents or incorrectly broken down amounts delay processing.

7. Check ongoing payments after opening

Clearly separate claims before and after the opening in your list. If ongoing remuneration is not paid correctly after the opening of insolvency, quick action is necessary. Depending on the status of the proceedings and the claim, special rights of termination and security rules may apply. However, only declare a resignation after concrete advice; form, timing, and justification are decisive.

Should I resign myself or leave prematurely?

Insolvency alone is not a reason to spontaneously send a resignation. This can affect severance pay, unemployment benefits, and other claims. A justified premature resignation can be possible or even important in certain situations, but must be carried out correctly under labor law.

The right decision depends, among other things, on when payments are missing, whether the proceedings have already been opened, whether the insolvency administration is paying, and which termination steps have been announced. The sensible sequence is therefore:

document outstanding amounts and due dates,
check edict and status of proceedings,
contact Chamber of Labour or trade union,
only then submit a termination declaration.

Also, do not sign a "mutual" resignation under time pressure. Have it checked which claims the wording triggers and whether all open positions are covered.

What to do when the job ends?

As soon as the end of the employment relationship is certain, you can take care of unemployment benefits at the AMS up to three weeks in advance. The application must be submitted at the latest on the first day of unemployment; if this falls on a weekend or a public holiday, the following working day applies according to the AMS. A late notification can cost money and cause gaps in health and pension insurance.

The notification to the AMS replaces neither the claim registration nor the IEF application. Conversely, the insolvency proceedings do not replace the application for unemployment benefits. Several proceedings run in parallel. The jobspot guide Registering as unemployed after job loss guides you through the AMS steps.

Also, demand the employment papers, a complete final settlement, and, if desired, a service certificate. If documents cannot be issued or information is incorrect, include this in the consultation.

Three typical practical cases

Case 1: Two months' salary are missing, but there is no edict yet

An employee hears that the company will soon file for bankruptcy. She should demand the outstanding salaries in writing, secure evidence, and seek advice immediately. An IEF application is not yet the right first step without an insolvency event. Despite this, she must not wait due to possible limitation periods.

Case 2: The proceedings are opened, the business continues to operate

The employment relationship remains active. The employee continues to work, documents his hours, and has the outstanding claims before opening registered via AK or ISA. He checks ongoing payments after opening separately.

Case 3: The location closes and terminations are announced

The employee seeks advice before every signature, secures vacation, time credits, and statements, and clarifies the termination date. She registers with the AMS in good time, while ISA and IEF proceedings continue in parallel.

Common mistakes in employer insolvency

No longer showing up for work: The employment relationship does not end automatically.
Relying only on internal information: The edict and the court status of the proceedings are decisive.
Leaving documents on the company computer: Personal evidence can be difficult to access after a closure.
Confusing six-month deadlines: Application deadline and secured claim period are not the same.
Roughly estimating claims yourself: Special payments, surcharges, and termination claims are easily overlooked.
Resigning or leaving prematurely: A wrong termination step can impair claims.
Forgetting AMS application: IEF and unemployment benefits are separate proceedings.

FAQ: Employer insolvent in Austria

Do I get my outstanding salary automatically?

No. The claims must be determined, registered in the insolvency proceedings, and applied for at IEF-Service GmbH. Support is provided by the Insolvency Protection Association of the Chambers of Labour and trade unions.

Do I have to continue working despite insolvency?

Basically yes, as long as the employment relationship is active and there is no other binding regulation. If the place of business is closed or instructions are unclear, you should document your readiness to work and seek advice.

How long do I have for the IEF application?

Basically six months from the opening of insolvency proceedings or from knowledge of certain other decisions. Do not rely on a general summary for the specific calculation.

Can I apply online?

Yes. IEF-Service GmbH offers electronic application with ID Austria. Representation by ISA is also possible.

What about freelance workers?

Freelance workers within the meaning of the ASVG can be eligible under the IESG. Contractors are not automatically treated the same. The specific form of contract should be checked.

Conclusion: Document, get advice, secure deadlines

Employer insolvency is stressful, but outstanding claims are not unprotected in Austria. It is crucial to keep the proceedings separate: The employment relationship initially remains in place, claims belong to the insolvency court, insolvency remuneration to the IEF, and unemployment benefits to the AMS.

Check the official status, secure your personal documents today, and create a list of all outstanding amounts. Then contact the Chamber of Labour or your trade union quickly. Anyone who does not resign in haste and systematically works through the deadlines protects their job, income, and insurance most effectively.

Sources and further information

Status: August 4, 2026. This article offers general orientation and does not replace individual legal advice. In the event of outstanding remuneration claims or a planned termination, those affected should immediately contact the Chamber of Labour, trade union, or qualified legal advice.