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by vidarh
3154 days ago
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Norwegian bankruptcy law also used to (probably still is, but I haven't worked in Norway for nearly 20 years) have a similar system where employees had that kind of protection at no cost for non-payment of wages. All you need to do is to file and the company would need to show up in bankruptcy court and explain why they should be put under administration (and really the only valid reasons would be that they don't owe wages (any more)). Very effective at ensuring companies protect wage payments - I repeatedly had it drilled into me from accountants when on the other side of the table how vital it was to ensure salaries payments went ahead no matter what other difficulties (the priority order was roughly taxes that it'd be an offense not to ring-fence, electricity/phone/internet because they could just shut down and wipe you out, and salaries - everything else was lower priority because it could be fought or negotiated over). If you'd miss salary payments you had no recourse other than to beg and/or borrow or come to an understanding with employees. The one thing giving you some flexibility was a government insurance pool for salary payments that'd cover up to 6 months, so if you treated people nice they'd be willing to give you some grace knowing their salaries would eventually get paid (though claiming back takes time). It's a very useful way of leveling power in cases where managers might otherwise see employees as the easiest to push around. |
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