What do I do if the job goes bankrupt?

When bankruptcy proceedings are opened, an administrator is appointed, and the administrator takes over the management of the company. The purpose is to get an overview and realise the values that remain in the estate.

As an employee, you must deal with the administrator. The administrator must inform all employees of their rights in connection with the bankruptcy.

The bankruptcy estate automatically enters into the employment contracts, but in the vast majority of cases, the administrator will dismiss the employees.

What happens to your salary

Non-payment of salary and holiday pay can be covered through the state's wage guarantee scheme. The wage guarantee is administered by NAV and is intended to secure you salary, holiday pay, pension and other salary benefits that your employer cannot pay due to the bankruptcy.

You can receive an advance on unemployment benefits from NAV for the first month after your employer is bankrupt.

Read more about salary guarantee (nav.no)

The business can continue after a bankruptcy

The fact that the enterprise is declared bankrupt does not have to mean that the activity ceases. Sometimes the business continues by a transfer of business from the estate to new owners.

The new owners can choose which of the employees they want to take with them. They are not bound by the pay and working conditions that applied with the employer who has gone bankrupt. However, you will have preferential rights to employment in the new enterprise. The preferential right applies for one year from the end of the notice period, for positions for which you are qualified.

The employer is not obliged to contact employees with preferential rights. You must therefore follow and apply for vacancies yourself. In the application, you must show that you have preferential rights.