IN THE EVENT OF AN EMPLOYER'S BANKRUPTCY, IN WHAT ORDER OF PRIORITY ARE EMPLOYEE WAGES AND SEVERANCE PAYMENTS MADE?

IN THE EVENT OF THE EMPLOYER'S BANKRUPTCY, IN WHAT ORDER ARE EMPLOYEE WAGES AND COMPENSATION PAID?

Employee wages are among the privileged claims. The bankruptcy estate established for the liquidation of the bankrupt employer's debts shall first pay public claims such as the state's taxes and insurance premiums, as well as the secured (mortgaged) claims of other natural and legal persons (banks), and subsequently pay the employee's monetary (wage) claims arising from laws and contracts, benefits measurable in money, and severance and notice pay entitled upon the termination of the employment relationship due to bankruptcy.