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Is insolvency assistance for employees being outsourced?

More and more company bankruptcies are currently making headlines: Nevertheless, the help center for employees is now to be closed. Those affected would have to travel a long way. 

After Corona, more and more companies in Carinthia have slipped into insolvency. "Last year, there were 299 in Klagenfurt alone, and the rate is rising by 20 percent," says Klagenfurt SP finance officer Philipp Liesnig. "Now, of all times, they want to dissolve the insolvency compensation fund for employees in Klagenfurt, meaning thousands of Carinthians would have to travel to Graz. They also want to relocate the employees to Graz."

The number of insolvent companies is increasing and many are affected. Last year, 1000 employees received help from the insolvency compensation fund.

Philipp Liesnig, Vizebürgermeister und Finanzreferent Klagenfurt (SP)

The insolvency of a company primarily affects its employees. In addition to the uncertainty about their professional future, the question arises as to who will pay outstanding wages and termination claims such as severance pay and compensation in lieu of notice. "The Insolvency Remuneration Fund was set up as a state institution to secure these claims. 1000 employees received help in Klagenfurt last year. The office must remain open," demands Liesnig.