When an employer is liquidated, employees must take specific steps to protect their rights and prepare for the future. Here’s some advice for an employee in this situation, along with recommended steps before job searching:
1. Understand Your Rights
- Review Your Employment Contract: Check your employment contract and company policies to understand your entitlements, such as unpaid wages, redundancy pay, and notice periods.
- Know Your Legal Rights: The Employment law ensures certain protections when a company is liquidated. Depending on local laws, you may be entitled to severance, unpaid wages, or other compensations.
2. Seek Official Information
- Request a Written Notice: Ensure you receive official communication from the company or liquidator regarding the liquidation process and the company’s closure timeline.
- Contact the Liquidator: The liquidator is responsible for handling the company’s debts and assets. You should contact them to inquire about owed wages, and benefits, and how you can file a claim as a creditor if needed.
3. Claim Unpaid Wages or Benefits
- File Claims for Outstanding Payments: If there are unpaid wages, benefits, or bonuses, you may need to file a formal claim with the liquidator or relevant government bodies to recover these funds.
- Redundancy and Severance Pay: You may be eligible for redundancy pay. If your company can’t pay, some governments have schemes to cover these payments in the event of liquidation.
4. Gather Important Documents
- Get Your Employment Records: Collect copies of your employment contract, pay slips, tax forms, performance reviews, and any other relevant documents. These will be helpful when applying for new jobs or claiming benefits.
- Request a Reference: Before the company fully closes, it’s a good idea to ask for a reference letter from your supervisor or HR. It can help when applying for new jobs.
5. Assess Financial Assistance
- Check for Unemployment Benefits: Explore your eligibility for unemployment benefits or financial assistance from the government while you are searching for a new job.
- Look for Emergency Grants or Schemes: Some countries offer emergency funds or schemes for employees affected by company closures.
6. Update Your Resume and Network
- Refresh Your Resume: Before starting your job search, update your resume with your most recent role and skills.
- Leverage Your Network: Reach out to professional contacts to let them know you’re available for work. Networking can sometimes help you find new opportunities faster than traditional job applications.
7. Consider Career Path Options
- Reevaluate Your Career Goals: This can be an opportunity to explore different industries or roles. If you’re considering a career change, now might be a good time to upskill or pursue training in a new field.
- Take Advantage of Job Support Services: Many governments or non-profit organizations offer job placement services, career counselling, or retraining programs for workers impacted by layoffs.
Taking these steps will help ensure you’re financially protected and in a strong position to search for new opportunities.
