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Lönegarantilagen (Wage Guarantee Act)

Lönegarantilagen (Wage Guarantee Act)

A wage guarantee is a form of protection for the employee if the employer enters into bankruptcy or restructuring and the employees do not receive their salary. The wage guarantee means that an employee can receive compensation for the salary or wage that the employer owes. The wage guarantee applies when the employer goes bankrupt or enters into restructuring. The administrators for bankruptcy or restructuring will determine whether an employee is entitled to a wage guarantee and how much money they should receive. Administrators for bankruptcy or restructuring are appointed by the district court.

The wage guarantee also ensures that the employee receives their severance pay for the severance period when the employment ends.

If the employee is deemed entitled to a wage guarantee, the County Administrative Board (Länsstyrelsen) will pay out the salary.

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