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Act of 30th May 2014 on Amending the Act on the Protection of Workers’ Claims in the Event of Insolvency of Their Employer




by:
BSJP Brockhuis Jurczak Prusak Sp.k. - Warsaw Office

 
July 4, 2014

The abovementioned act was passed and forwarded to the President of the Republic of Poland and the Speaker of the Polish Parliament on 30th May 2014.

The changes to be introduced under the amendment regulate the situation where secondary bankruptcy proceedings are instigated against an employer following an earlier dismissal of a petition for declaration of bankruptcy of the employer when the employer’s assets are not sufficient to cover the costs of the proceedings, or following a dismissal of a bankruptcy petition when it is determined that the debtor’s assets are encumbered by a mortgage or a pledge.

Pursuant to the transitional provisions, the amended wording of the act is to apply to workers’ claims covered by the act that have arisen after 1st January 2013. In the event of the lapse of the one-month time limit applicable to such claims for them to be included in the breakdown of unsatisfied claims as drawn up by the employer, official receiver, liquidator or another person responsible for administration of the employer’s assets, as referred to in Art. 15 para 1 of the act, and provided that the claims have arisen prior to entry into effect of the amendment, the time limit will run from the day of entry into effect of the amendment.

Furthermore, the wording of Art. 23 para 5 of the act was changed in such a manner that under the amendment, the premise for the repayment of a debt of an employer to the Guaranteed Workers’ Benefit Fund to be divided into instalments or deferred, or for the recovery of the debt to be waived in full or in part, or for the debt to be written off in full or in part, will be a situation where the debt recovery proceedings or the enforcement proceedings are conducted in line with the rules for granting de minimis aid under separate provisions of European Union law, which results from the fact that the general reference to the provisions regulating the granting of de minimis aid will eliminate the risk of non-compliance of the amended act with EU regulations in the event that they are changed.

 

The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
 

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Practice Area
 
Labor & Employment
 
BSJP Brockhuis Jurczak Prusak Sp.k. Overview