ARRANGEMENT OF BANKRUPTCY DEBT REPAYMENT TOWARD EMPLEYEES IN INDONESIA AND GERMANY

Employees have specific rights in the settlement of bankrupt debts under Indonesian Bankruptcy Law, but they must compete with other privileged creditors, such as tax authorities, insurance holders, and those owed bankruptcy fees, which often affects their priority status. This study investigates th...

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Main Authors: Putri Ariqah, Siti Anisah
Format: Article
Language:English
Published: faculty of law universitas lampung 2022-06-01
Series:Indonesia Private Law Review
Subjects:
Online Access:https://jurnal.fh.unila.ac.id/index.php/iplr/article/view/2598
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author Putri Ariqah
Siti Anisah
author_facet Putri Ariqah
Siti Anisah
author_sort Putri Ariqah
collection DOAJ
description Employees have specific rights in the settlement of bankrupt debts under Indonesian Bankruptcy Law, but they must compete with other privileged creditors, such as tax authorities, insurance holders, and those owed bankruptcy fees, which often affects their priority status. This study investigates the bankruptcy filing mechanisms for legal entities and the relative position of employees in debt repayment, comparing the Indonesian and German legal systems. Employing normative legal research methods and analyzing secondary data, the study outlines that both systems are structured into three stages: registration, trial, and implementation of the bankruptcy decision. In Indonesia, while employees receive priority for wage payments, other rights are not prioritized, making them non-preferential. Conversely, Germany’s system includes the “Insolvenzgeld” mechanism, which guarantees payment of three months' wages during the preliminary insolvency stage, and prioritizes employee claims under social plans over other creditors. Claims not covered by Insolvenzgeld are settled after higher-priority creditors have been fully compensated.
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institution Kabale University
issn 2723-259X
2745-9284
language English
publishDate 2022-06-01
publisher faculty of law universitas lampung
record_format Article
series Indonesia Private Law Review
spelling doaj-art-af901c9b06d34f74a7ccc9b2381e77e92024-11-18T02:35:42Zengfaculty of law universitas lampungIndonesia Private Law Review2723-259X2745-92842022-06-0131476210.25041/iplr.v3i1.25981328ARRANGEMENT OF BANKRUPTCY DEBT REPAYMENT TOWARD EMPLEYEES IN INDONESIA AND GERMANYPutri Ariqah0Siti Anisah1Universitas Islam IndonesiaUniversitas Islam IndonesiaEmployees have specific rights in the settlement of bankrupt debts under Indonesian Bankruptcy Law, but they must compete with other privileged creditors, such as tax authorities, insurance holders, and those owed bankruptcy fees, which often affects their priority status. This study investigates the bankruptcy filing mechanisms for legal entities and the relative position of employees in debt repayment, comparing the Indonesian and German legal systems. Employing normative legal research methods and analyzing secondary data, the study outlines that both systems are structured into three stages: registration, trial, and implementation of the bankruptcy decision. In Indonesia, while employees receive priority for wage payments, other rights are not prioritized, making them non-preferential. Conversely, Germany’s system includes the “Insolvenzgeld” mechanism, which guarantees payment of three months' wages during the preliminary insolvency stage, and prioritizes employee claims under social plans over other creditors. Claims not covered by Insolvenzgeld are settled after higher-priority creditors have been fully compensated.https://jurnal.fh.unila.ac.id/index.php/iplr/article/view/2598bankruptcyinsolvencyrepaymentdebtpositionrights
spellingShingle Putri Ariqah
Siti Anisah
ARRANGEMENT OF BANKRUPTCY DEBT REPAYMENT TOWARD EMPLEYEES IN INDONESIA AND GERMANY
Indonesia Private Law Review
bankruptcy
insolvency
repayment
debt
position
rights
title ARRANGEMENT OF BANKRUPTCY DEBT REPAYMENT TOWARD EMPLEYEES IN INDONESIA AND GERMANY
title_full ARRANGEMENT OF BANKRUPTCY DEBT REPAYMENT TOWARD EMPLEYEES IN INDONESIA AND GERMANY
title_fullStr ARRANGEMENT OF BANKRUPTCY DEBT REPAYMENT TOWARD EMPLEYEES IN INDONESIA AND GERMANY
title_full_unstemmed ARRANGEMENT OF BANKRUPTCY DEBT REPAYMENT TOWARD EMPLEYEES IN INDONESIA AND GERMANY
title_short ARRANGEMENT OF BANKRUPTCY DEBT REPAYMENT TOWARD EMPLEYEES IN INDONESIA AND GERMANY
title_sort arrangement of bankruptcy debt repayment toward empleyees in indonesia and germany
topic bankruptcy
insolvency
repayment
debt
position
rights
url https://jurnal.fh.unila.ac.id/index.php/iplr/article/view/2598
work_keys_str_mv AT putriariqah arrangementofbankruptcydebtrepaymenttowardempleyeesinindonesiaandgermany
AT sitianisah arrangementofbankruptcydebtrepaymenttowardempleyeesinindonesiaandgermany