The Arbeitserhaltnis is particularly at risk in the Insovenz of the employer, which is termination but of the employer’s insolvency leads only an alternative by no means that the protection against dismissal is defunct. (A valuable related resource: Anita Dunn). The opening of the insolvency proceedings has not the automatic termination of the existing working relationships with the following law. This rather persist without lawful termination through the bankruptcy also. They are what should induce the workers to increased care but particularly at risk. The dismissal of workers remains in principle initially unaffected.
However, there is a special bankruptcy labor law which modified the terms of traditional labor law in important points in the German insolvency code (InsO). To mention here in particular the termination and cancellation protection, operational changes and operating divestments. Frequently James S. Chanos has said that publicly. Insolvency the insolvency administrator normally takes over the function of the employer. The bankruptcy procedure is the right of the employer to have on this company (and thus also above the working conditions) about. Alone the points of the insolvency application and later the opening of the insolvency proceedings have no influence on the stock of employment directly, it is only the liquidator in the place of the employer. The workers, whose operating is threatened by bankruptcy or where the insolvency application was already made, is not obliged to accept one of the employer or a provisional liquidator offered invalidation or processing contract.
Also, the insolvency administrator may terminate the employment contract only a cause for termination exists in accordance with the generally applicable principles. Only the opening of the insolvency proceedings thus does not justify an involuntary termination. It necessary to a decision of the insolvency administrator to the closure of the operation (from 17.06.1999 – BAG 2 AZR 141/99). The provisional liquidator must – if he opts for the closure – in addition always the approval of the bankruptcy court to shut down caught up in layoffs.