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Emergency

Employer insolvent: insolvency benefit for outstanding wages

If insolvency proceedings are opened over your employer's assets and wages are still outstanding, the Employment Agency steps in: insolvency benefit secures your net pay for the last three months of the employment relationship before the insolvency event. The application deadline is important.

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Your chances of getting your money back

For the last three months before the insolvency event you are entitled to insolvency benefit in the amount of your net wage (§ 165 SGB III), paid by the Employment Agency.
The application must be filed with the Employment Agency within two months of the insolvency event. If you miss the deadline without a reason, the claim may lapse.

What you should do now

  1. 1

    1. Determine the insolvency event

    What matters is the opening of insolvency proceedings, the dismissal for lack of assets or the complete cessation of business operations.

  2. 2

    2. File the application

    Apply for insolvency benefit at the Employment Agency, within two months of the insolvency event.

  3. 3

    3. Attach documents

    Have your employment contract, pay slips and proof of the outstanding amounts ready; the insolvency administrator often helps with certificates.

  4. 4

    4. Register remaining claims

    Register wages for older periods as a claim with the insolvency schedule. Also check current wages after the opening of proceedings.

How to spot the scam

  • You wait longer than two months to file the application.
  • The employer has been paying irregularly for months, which is a warning sign.
  • You do not register outstanding older claims with the insolvency schedule.

Frequently asked questions

What is insolvency benefit?

A benefit from the Employment Agency that replaces your lost net wage for the last three months of the employment relationship before the insolvency event (§ 165 SGB III).

By when must I apply for it?

Within two months of the insolvency event (e.g. the opening of insolvency proceedings). If the deadline is missed without fault, an extended deadline may be possible, but do not wait.

Do I also get back older wages?

Wages for periods outside the three months are not covered by insolvency benefit. You register such claims with the insolvency administrator for the insolvency schedule; the quota is often low.

Take action now

We put together the ready-made texts and the right places to contact for you.

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.