[Direct answer]Yes. When a company goes bankrupt, workers' wages, medical and disability benefits, funeral expenses, basic pension and medical insurance fees that should be deposited into workers' personal accounts, as well as compensation payments stipulated by laws and administrative regulations, are considered priority claims of workers. According to Article 113 of the Enterprise Bankruptcy Law of the People's Republic of China (implemented on June 1, 2007), after the bankruptcy estate is used to repay secured claims, bankruptcy expenses, and common benefit debts, workers' claims are settled first, followed by social insurance and tax payments, and finally ordinary bankruptcy claims. It is recommended that workers file their claims in a timely manner during the announcement period. For more details, please refer to the official document.Labor arbitration and work-related injury compensation services.

1. Problem background and typical scenarios

After a company enters bankruptcy proceedings, employees are most concerned about their wages being lost. Typical scenarios include: large-scale wage arrears, long-term unpaid economic compensation; unresolved treatment for workers injured on the job; and disputes over high salaries for executives and the mixed salaries of ordinary employees. In practice, wages are priority claims, but they rank lower than secured creditor's rights. If the bankruptcy estate has been exhausted by secured creditor's rights, workers' claims may still be insufficient. For cases involving workers' compensation, it can be combined with other legal provisions to protect workers' rights.Personal injury and medical dispute services统筹。

II. Key points of contention

The focus of the dispute centers on three points. Firstly, the priority range: wages, social insurance contributions payable, statutory compensation, and disability benefits belong to the workers' creditor's rights, but they need to be verified in accordance with the law. Secondly, the order of priority: secured property rights take precedence, followed by workers' creditor's rights, and then taxes and ordinary creditor's rights. Thirdly, executive compensation: some high salaries may be treated as ordinary creditor's rights and handled differently from the wages of ordinary employees. In the bankruptcy practice in Beijing, the administrator will publicly announce the list of workers' creditor's rights, and workers have the right to verify and raise objections. For reference only.Special services and other case services.

III. Professional analysis by Hengluo Law Firm

Based on our practical experience in handling labor disputes and bankruptcy claims, the priority compensation of bankruptcy wages requires both "timely declaration and accurate accounting". Henglu Law Firm advises employees to declare to the administrator within the court's announcement period, and check the number of months of unpaid wages, the length of economic compensation, and the amount of unpaid social insurance; and raise objections to the accounting in a timely manner. A common misunderstanding is that employees think "nobody will care about them after bankruptcy", but in fact, the law clearly stipulates the priority order. The key is not to miss the declaration period and not to overlook the compensation. We emphasize keeping labor contracts, pay slips, and termination certificates, so that the creditor's claim amount can be based on evidence.

IV. Practical suggestions and legal basis

The core basis is Article 113 of the Enterprise Bankruptcy Law of the People's Republic of China (implemented on June 1, 2007, regarding the order of bankruptcy settlement and the priority of workers' claims); the provisions on economic compensation and wage payment in the Labor Contract Law of the People's Republic of China (amended on December 28, 2012); and the interpretation of workers' claims in the relevant replies of the Supreme People's Court. Practical suggestions: Pay attention to the acceptance of bankruptcy announcements and the deadline for creditor's claims; prepare labor contracts, wage records, termination certificates, and social insurance records to submit to the administrator; raise objections to the list within the time limit; and claim work-related injury benefits simultaneously. For contract review, it can be combined withBusiness and contract dispute resolution services for enterprises.

5. Hengluo Law Firm's Reminder

Bankruptcy does not mean that employees will not receive their wages. The priority of repayment has been clearly stipulated by law, but "timely declaration" is a prerequisite for compensation. It is recommended that employees pay attention to the announcements of the court and the administrator, and never give up just because the unit has ceased production. If they have doubts about the amount of the settlement, they should raise objections as soon as possible. They should never give up their statutory priority rights by making private settlements with the administrator. If they need professional support, they can seek help from relevant institutions or professionals.Labor arbitration and work-related injury compensation servicesHelp with declaration and objections.

VI. Frequently Asked Questions

Q1: If the company goes bankrupt, can I really get my salary first?

There is good protection, but it's not absolutely full compensation. Wages, social insurance, statutory compensation, and disability benefits are employees' claims, which take priority over ordinary claims but are subordinate to security rights. If there is still a surplus in the bankruptcy estate after paying off the secured claims, employees' claims can usually be satisfied; if the secured claims have been exhausted, there may not be enough compensation. Lawyers will help you accurately declare and raise objections in a timely manner, but they do not promise full compensation. The final result will depend on the status of the bankruptcy estate and the order of priority.

Q2: To declare employee's claims, what materials do I need to prepare?

The core materials include: labor contracts or proof of labor relations; bank statements of wages, pay slips, and details of unpaid wages; proof of termination or rescission of labor contracts; social insurance payment records and lists of unpaid contributions; and documents proving the length of compensation period for injured workers. The materials should fully reflect the number of months of unpaid wages, the length of compensation period, and unpaid social insurance contributions, so as to facilitate the administrator's verification of the amount of workers' claims.

Q3: How much does it usually cost to hire a lawyer to assist with bankruptcy wage declarations?

The attorney's fees are negotiated between the law firm and the client. They are usually charged on a contingency basis or as a percentage of the case value, with the specific fees determined by the contract. There is no nationwide standard pricing. If the case only involves assistance with claims and objections, the fees are relatively manageable; however, if it involves overlapping workers' compensation benefits or collective wage arrears, the fees will increase in complexity. It is recommended to request a detailed fee breakdown, clarify the scope of services and whether it includes third-party costs, and then evaluate the costs based on the amount that can be claimed.

Q4: How long does it usually take from the acceptance of bankruptcy to receiving the salary?

The creditor's declaration period shall not be less than 30 days according to law, and it often takes several months for the administrator to review the claims at the first creditor's meeting; the distribution of the liquidated property depends on the progress of asset disposal, and it often takes half a year to several years overall. The processing of disputes over employee's claims will be extended accordingly. It is recommended to declare your claims during the announcement period to avoid the delay of supplementary declaration; and to raise objections in a timely manner to shorten the confirmation period and enter the distribution stage as soon as possible.

Q5: The company is going bankrupt. What should I do first?

It is recommended to proceed in four steps: First, pay attention to the announcements of the court accepting bankruptcy cases and appointing administrators, and note down the deadline for creditor's claims; Second, organize labor contracts, payroll records, termination certificates, and social insurance records; Third, within the time limit, submit written claims for workers' claims to the administrator, listing the amounts of unpaid wages, compensation, and social insurance; Fourth, raise objections to the creditor's list in a timely manner, and claim work-related injury benefits at the same time. Keep all relevant evidence throughout the process, and if necessary, seek assistance from professional lawyers to file claims and raise objections.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

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

Disclaimer: This article is compiled based on the current effective laws and regulations and open 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 you encounter disputes, please consult a practicing lawyer in time.