Contents
- 1. Context
- 2. What workers can be paid
- 3. Payment priority order
- 4. Social, health and unemployment insurance
- 5. What workers should do
- 6. Frank practical realities
- 7. Frequently asked questions
- 8. Language versions
- 9. References
1. Context
From 01/3/2026, the 2025 Recovery and Bankruptcy Law (Law No. 142/2025/QH15) replaces the 2014 Bankruptcy Law. When bankruptcy proceedings open, workers' first question is always: will my last months' wages, severance and social insurance be lost?
Good news: the law prioritizes workers' claims ahead of most other creditors. Frank caveat: "priority" does not mean "100% recovery" — everything depends on the company's remaining assets.
2. What workers can be paid
In a company bankruptcy, workers may recover:
- ☐ Wage arrears: unpaid months up to termination.
- ☐ Severance / job-loss allowances: per the 2019 Labour Code (per year of service at statutory rates, excluding UI-covered periods).
- ☐ Social, health and unemployment insurance: company arrears owed to the insurance agency — directly affecting workers' benefit entitlements.
- ☐ Other benefits under labour contracts, collective agreements and internal regulations (unused leave, promised bonuses…).
3. Payment priority order
Under the 2025 Recovery and Bankruptcy Law, company assets distribute in priority order — workers rank high:
- Bankruptcy costs (proceeding expenses).
- Wage debts, severance, social/health/unemployment insurance and other worker benefits.
- Secured debts (after collateral realization).
- Other unsecured debts, fiscal obligations to the State…
Practical meaning: banks and suppliers (unsecured creditors) are paid only after workers.
4. Social, health and unemployment insurance
- Company SI arrears rank as priority debts the administrator must pay to the insurance agency.
- Once settled, workers get their SI books closed, preserving contribution history for benefits (unemployment, pension, lump sum…).
- Note: if no assets remain to cover SI debts, workers' benefits may suffer — monitor closely and complain promptly.
5. What workers should do
- ☐ File claims: submit wage and allowance claims to the asset administrator/liquidator within statutory deadlines.
- ☐ Keep evidence: labour contracts, payslips, bank statements, termination decisions, SI books.
- ☐ Attend creditors' meetings: workers (or their collective representative) may attend and vote on plans.
- ☐ Engage a lawyer for large amounts or complex procedures.
6. Frank practical realities
- ⏳ Bankruptcy proceedings take time (months to years) — don't expect immediate payment.
- 💰 If assets are insufficient, workers may recover only partially — even with priority.
- 📝 Filing claims on time is essential — late filing can forfeit rights.
- 🤝 Negotiating with the owner before proceedings sometimes beats waiting for asset distribution.
7. Frequently asked questions
If a company goes bankrupt, do workers get paid their wages? Yes. Wage arrears, severance and social insurance rank as priority payments ahead of most unsecured debts.
What is the payment priority in bankruptcy? Bankruptcy costs first; then workers' wage, severance and insurance debts; then other debts in statutory order (Law 142/2025/QH15).
If the company owes social insurance, do workers lose benefits? SI debts rank as priority. But insufficient assets may mean partial recovery — monitor and file fully.
What should workers do to protect their rights? File claims on time with the administrator; keep full evidence; attend creditors' meetings; engage a lawyer when needed.
Worker owed wages in a company bankruptcy? Contact FLAT Law Firm for claim filing and rights protection.
8. Language versions
9. References
- 2025 Recovery and Bankruptcy Law (Law No. 142/2025/QH15) — effective 01/03/2026, replacing the 2014 Bankruptcy Law (Vietnam).
- 2019 Labour Code (Law No. 45/2019/QH14) (Vietnam).
- Content cross-checked at the time of writing (28/9/2026).
