[Direct answer]In the Beijing area, workers' claims are given priority repayment, but they are not absolutely the first in line. According to Article 113 of the Enterprise Bankruptcy Law of the People's Republic of China, after bankruptcy expenses and common benefit debts are paid off first, the bankruptcy property shall be repaid in the following order: First, the wages and medical treatment, disability compensation, and pensions owed to workers by the bankrupt, as well as the basic pension and medical insurance fees that should be deposited into workers' personal accounts and the compensation payments required by laws and administrative regulations; Second, the social insurance fees and taxes owed by the bankrupt that are not covered by the above provisions; Third, ordinary bankruptcy claims. In other words, workers' claims rank ahead of taxes and ordinary claims and are the highest-priority claims. However, it should be noted that creditors with security rights over specific assets have priority repayment rights over those specific assets, which generally take precedence over workers' claims; and according to Article 132 of the law, for workers' claims owed before the promulgation of the Bankruptcy Law, if the amount is insufficient after repayment according to Article 113, they may also be repaid from the secured assets under certain conditions.

1. Problem background and typical scenarios

After a company goes bankrupt, employees are most concerned about whether they can recover their unpaid wages, economic compensation, and social insurance fees. Since the bankruptcy estate is often insufficient to settle all debts, the order of repayment directly determines whether employees can be compensated and the proportion of compensation. Clarifying the priority and scope of employees' claims is the key to protecting their rights.

II. Key points of contention

First, the specific scope of employee claims. Second, the priority relationship between employee claims and secured claims. Third, the impact of bankruptcy expenses and common benefit debts. Fourth, the declaration and confirmation of employee claims. Fifth, special arrangements for the transition between the old and new rules.

III. Professional analysis by Henglue Lawyers

Henglue Lawyer explained this from two aspects: priority and operation. Firstly, scope definition: employee claims include unpaid wages, medical expenses, disability compensation, and funeral expenses, as well as basic pension and medical insurance premiums that should be deposited into employees' personal accounts, and compensation payments required by laws and administrative regulations, such as economic compensation. Secondly, priority rules: bankruptcy assets shall first pay for bankruptcy expenses and public welfare debts, then be liquidated in accordance with legal order, with employee claims ranked first, taking precedence over social insurance premiums and taxes except employee claims, and even over ordinary claims. Thirdly, secured claims: creditors with security rights over specific assets of the debtor may be prioritized for repayment from such assets, which are usually not included in ordinary distribution. Therefore, secured claims and employee claims do not compete directly for the same priority. However, if there is a surplus after the disposal of secured assets, the surplus may be used to settle other claims. Fourthly, special protection: to better protect historical wage arrears formed before the promulgation of the Bankruptcy Law, the law sets special rules allowing compensation from specific secured assets under certain conditions when insufficient liquidation occurs, reflecting the tilted protection of employees' rights. Fifthly, declaration and confirmation: employee claims are usually listed and announced by the administrator after investigation, and employees do not need to declare them individually like ordinary creditors. However, if they have objections to the list, they can request corrections. If the administrator refuses to correct them, they can file a lawsuit with the people's court. In bankruptcy cases in Beijing, the scope and amount of employee claims are subject to stricter review.

IV. Practical suggestions and legal basis

Action suggestions: First, pay close attention to the list of employee claims announced by the administrator in a timely manner, and check the amounts of wages, compensation, and social insurance; Second, if you have any objections to the list, request correction in a timely manner and keep the evidence; Third, pay attention to the disposal of the guaranteed property and the expenditure of bankruptcy costs; Fourth, if necessary, safeguard your own rights and interests through creditor meetings or litigation. For matters related to corporate bankruptcy and creditor's rights, you can refer to the relevant provisions of the Bankruptcy Law of the People's Republic of China and other relevant laws and regulations.Business and contract disputes in enterprisesFor matters involving the realization and enforcement of creditor's rights, you may refer to the following provisions:Creditor's rights and debts, and enforcementLegal basis: Article 113 and Article 132 of the Enterprise Bankruptcy Law of the People's Republic of China (effective June 1, 2007), and Articles 46 and 47 of the Labor Contract Law of the People's Republic of China (amended and effective July 1, 2013). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Advice

Firstly, employee claims rank first in priority, taking precedence over taxes and ordinary claims. Secondly, employee claims include wages, compensation, and personal account social security fees. Thirdly, secured claims are given priority in repayment for specific assets. Fourthly, if there are objections to the list of employee claims, parties may request corrections and file lawsuits. For matters involving bankruptcy and employee claims, parties may seek resolution through legal channels.Business and contract disputes in enterprisesThe service provides a comprehensive solution, and those involving labor disputes can be combined with it.Labor disputes and work-related injury compensationFor plates involving creditor's rights enforcement, you can refer to the following information for reference.Creditor's rights and debts, and enforcementFor any questions regarding difficult situations, you can consult the column for assistanceSpecial servicesTeam.

VI. Frequently Asked Questions

Q1: What is the priority of workers' wages after bankruptcy?

First priority. After the bankruptcy estate is used to pay off the bankruptcy expenses and the common benefit debts, the workers' wages, medical disability benefits, pensions, social security fees that should be allocated to personal accounts, and statutory compensation shall be paid off first. Then, the arrears in social security payments and taxes, as well as ordinary creditor's rights, shall be paid off.

Q2: What items are included in employee claims?

It includes the unpaid wages, medical expenses, disability benefits, and funeral expenses; the basic pension and basic medical insurance premiums that should be credited to the workers' personal accounts; and the compensation payments that should be paid to workers according to laws and administrative regulations, such as economic compensation.

Q3: Do secured claims take priority over those of employees?

The secured creditor may receive priority repayment for specific secured property, which is usually not included in the general distribution. Therefore, the secured creditor has priority in respect of the same specific property; the law also sets special protection rules for employee claims formed before the promulgation of the bankruptcy law.

Q4: Do employees need to declare their own claims for compensation?

Generally, there is no need to declare them one by one. The workers' claims shall be listed and publicized by the administrator after investigation, and the workers can check them. If they have any objections to the list, they can request corrections; if the administrator refuses to make corrections, they can file a lawsuit with the court.

Q5: What should I do if I can't get back all the unpaid wages?

It depends on whether the bankruptcy estate is sufficient. If the estate is insufficient, employees' claims may not be fully compensated; you can pay attention to the disposition of secured property and the expenditure of common benefit debts, and if necessary, supervise or initiate litigation to protect your rights through a creditors' meeting.

The above answer is based on the judicial practice in the Beijing area. The adjudication opinions in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Corporate commercial legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in a timely manner.