A claim to insolvency benefits against the Federal Employment Agency does not arise until the insolvency proceedings are opened. In order to ensure the punctual payment of employees' remuneration claims already in the application proceedings, the insolvency allowance can be prefinanced with the approval of the Federal Employment Agency. The employee assigns his claims to insolvency pay to the pre-financing bank and subsequently receives his net pay (eligible for insolvency pay) for a maximum of three months.
If required, we prepare the applications for the Federal Employment Agency and the contracts with the pre-financing bank. In addition, we prepare the assignment contracts for the employees, review and advise on insolvency law specifics of payroll accounting, conduct internal communication with the HR department and, if requested, arrange for payments within the framework of insolvency benefit pre-financing.
