Minor quibble: a lot of businesses go bust unable to pay redundancy and there are very rarely consequences for directors unless reckless trading can be proven. That at least is my experience in Ireland and UK.
I am most familiar with the situation in Israel with respect to layoffs; not paying severance in Israel is criminal whether or not the company folds (with officers actually indicted), and it’s 1-month per year of employment, with social security underwriting this payment.
As a result of this strict lawful requirement, there’s an industry of regulated escrow middlemen who collect 8.33% of monthly salary from employer on behalf of severance. If employee is terminated for cause, employer may get it back. In all other cases (including going bust), it goes to the employee.
As a result of this strict lawful requirement, there’s an industry of regulated escrow middlemen who collect 8.33% of monthly salary from employer on behalf of severance. If employee is terminated for cause, employer may get it back. In all other cases (including going bust), it goes to the employee.