Source: BUS Sachsen-Anhalt (Linie6PLus)

Applying for insolvency money

Description

Your employer is in financial difficulties and therefore owes you the remuneration. If a so-called insolvency event occurs, you are entitled to insolvency money from this point on. Such an insolvency event may consist, for example, in the opening of insolvency proceedings against your employer. With the insolvency money you can compensate for your loss of wages for a maximum of 3 months.

Insolvency money is paid retroactively. Compulsory contributions to unemployment insurance are not a prerequisite. Marginally employed persons, interns, students, pensioners and trainees can receive insolvency benefits. In the case of, for example, managing partners, shareholders of a GmbH or members of the employer, proof of employee status must be provided for a claim for insolvency money.

You can only get it for the salary that has not been paid to you in the last 3 months of the employment relationship before the insolvency event. If your employment relationship has previously been terminated, the insolvency benefit period covers the last 3 months of your employment relationship.

You will receive exactly as much insolvency money as you have recently earned net wages. However, the contribution assessment limit of unemployment insurance forms the upper limit. The extent to which special payments (e.g. Christmas bonuses) can be replaced via insolvency money depends on the provisions in your employment contract and must be examined on a case-by-case basis.

If your employer does not pay any social security contributions due to insolvency, this is covered by the Employment Agency at the request of the collection office (health insurance company). Outstanding contributions are paid for the last 3 months of your employment relationship before the insolvency event.

Further information can be found on the website of the Federal Employment Agency.

Requirements

In order for you to receive insolvency money, certain conditions must be met:

There is an insolvency event if
- opening insolvency proceedings against your employer's assets, or
- Insolvency application is rejected for lack of assets or
- Operations are completely discontinued in the event of obvious lack of mass.
Before the insolvency event, you were not paid any remuneration for up to 3 months.
As an employee, you are
- within Germany or
- have been temporarily posted abroad while retaining the social security obligation in Germany.
You must prove by decision of the clearing house of the German pension insurance (status determination procedure) that you are legally considered an employee if, for example, you
- acting partner
- Shareholder of a GmbH or
- are relatives or relatives of the employer.
Further information can be found on the website of the Federal Employment Agency.

Which documents are required?

When contacting your consultant, please ask which documents you need in detail.

Appeal

Forms available: Yes
Written form required: No
Informal application possible: No
Personal appearance necessary: No
Online services available: Yes

Process flow

Apply for the insolvency allowance at the Employment Agency. You can submit the application in paper form or electronically.

Submit application in paper form:

The application form can be obtained from any employment agency or on the website of the Federal Employment Agency.
Complete the application in full and submit it signed, including the attachments, to your employment agency.
For final processing, the insolvency money certificate is required.
- The insolvency money certificate is issued by the insolvency administration or by your company. It is requested by the Employment Agency.
- In order to speed up the procedure, you can also obtain the insolvency money certificate yourself from the insolvency administration or from your company and attach it to the application immediately. The form is also available from any employment agency or via the Internet.
The Employment Agency will review your application and documents. You will receive a notification of the decision on your application from the Employment Agency.

Apply for insolvency money online:

Go to the "eServices" portal on the website of the Federal Employment Agency.
Log in with your user ID and call up the application for insolvency money.
Fill out the online application process, upload all documents as attachments and send the application.
The Employment Agency will review your application and documents. You will receive a notification of the decision on your application from the Employment Agency.