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First by the social outburst and then for the coronavirus pandemic Many national companies are going through serious difficulties. Thousands have taken up the so-called “Employment Protection Law”, temporarily suspending the contracts of its workers, who must resort to unemployment insurance or a state fund to receive income while they are “frozen.” Other employers have had to fire for “business needs.” And there are employees who have been left in a kind of limbo because their source of labor has fallen into bankruptcy.
An iconic case of the last known situation “White House”, which initiated the so-called bankruptcy proceeding for the liquidation of assets to face a debt of two thousand 102 million pesos. This fact even caused a spontaneous protest of a hundred of nocias who claimed because they did not receive dresses that they paid to marry.
The photographic store chain Fullcolor, with four decades of presence in the market, also filed for bankruptcy, for debts of 1,230 million pesos. Of a total of 21 stores, only six are open.
“According to the background of the last Report of the Superintendence of Insolvency and Re-entrepreneurship, between January and April of this year the liquidation processes of Legal Persons, that is, of companies, grew by 12% compared to the same period in 2019. Following This trend, and considering that the economic effects of the pandemic have not yet been fully revealed, the projection is quite discouraging. Probably the liquidation cases will increase as long as there is no return to a normality that allows financial stability, and the aforementioned figures may be doubled ”, indicates the lawyer Diego Messen, partner of Moraga & CIA and academic of the universities Adolfo Ibáñez and From Chile.
For his part, the labor lawyer Rodrigo García He specified that the employee must be very clear about what is implied by Law 20,720 on Reorganization and Liquidation of Companies and People.
“The concept of bankruptcy changed with Law 20,720. There are two stages: judicial reorganization and then liquidation or bankruptcy. In the first, it is assumed that the employment relationship should not be affected, although according to the recent Employment Protection Law, the reduction of the working day is allowed and figures of the law may be generalized such as the suspension of the contract or dismissal due to company needs. Reorganization involves making a proposal to creditors, who may or may not accept it. The bankruptcy implies the rejection by the creditors meeting of the proposal and the court must declare the forced liquidation, with the cancellation of all work contracts and commitments. The worker must verify his credits to demand that in the payment process through the liquidator, or trustee, he be canceled when the assets are liquidated, and the employees are supposed to be first on the list ”.
AND Pedro Eguiguren, managing partner of Eguiguren Lawyers and former inspector of the Superintendency of Insolvency and Re-entrepreneurship, added that “The first thing that the worker must do is know if his employer accepted Law 20,720 or simply closed his curtains. In the event that the company has undergone a Bankruptcy Liquidation Procedure, bankruptcy, while the employment contract is in force, it is the duty of the liquidator to send the dismissal letter and make the settlement available to the worker. This settlement will be paid only if there are enough assets in the bankruptcy to answer for what is owed to the worker ”.
Legal worker tools
1.- Receive settlement
The trustee must prepare the settlement and the worker is waiting for the realization of assets for payment. The advantage of this alternative is that the sponsorship of an attorney is not required.
2.- Sue
This is done before the Labor Courts, demanding payment of benefits due, compensation for prior notice and years of service, and legal holidays, among others. You can also sue for the Subcontracting Law when the work was provided in dependencies of the employer’s principal.
3.- Appeal to the Labor Code
By means of a demand, it is requested that the employer unit be declared between two or more companies, under article 3 of the Labor Code.
4.- Pool resources
It should be noted that all these roads are not mutually exclusive, and the worker can freely use more than one if the working conditions warrant it.
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