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If your employer files for bankruptcy and you file for unemployment does he have to pay for any vacation pay due to you?
Wiki User
∙ 14y ago
In virtually all cases, payroll is given such a high, and immeadiate, priority position that it is paid ver quickly. (There may be some restrictions for very high salaries). Things like vacation benefits much less so, and are frequently foregone, particularly in dissolution or workforce reductions.
Wiki User
∙ 14y ago
Wiki User
∙ 9y agoThis will be a case by case basis. Your vacation time may be paid if the company is reorganizing after bankruptcy. However, there is no guarantee, especially if the company is closing its doors.
Wiki User
∙ 16y agoGenerally yes, Presuming it was earned before the BK.
There may be some cap on how much, but even then the cap is fairly high.
Wiki User
∙ 14y agoThe unemployment thing being irrelevant here..you get that in almost all cases..but the accrued vacation in most bankruptcies is not paid. Cash type payroll is.
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Don't worry, if the employer wins the appeal, you WILL be notified of what you have to do.
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If a car dealership files for bankruptcy, someone will purchase the accounts receivable as part of the bankruptcy settlement. That person or company should contact you and tell you where to make payments.
