Bankruptcy Law
Labor and Employment Law
Compensation and Benefits

Does a corporation filing bankruptcy have an obligation to pay accrued vacation to employees?

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2005-12-21 19:39:48
2005-12-21 19:39:48

by virtue of the financial tool called "bankruptcy" it is meant that you need protection from all creditors and those liabilities of your business. It's probably one of the reasons that the company needs help. Technically you could hire counsel to force your rights as employees but I can tell you this......in terms of fallout and who's gonna get their money first, employees are low on the totem pole. All the other creditors will have their claims satisfied first, read more about Enron- they are going through the same thing.

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