The senselessness of waiving labour related debts in tenders open to natural persons

Published in today’s issue of Expansión, our expert Jesús González Vizuete, lawyer at Lener’s Insolvency Administration Department, tackles the prickly matter of the current insolvency legislation in force; waving labour related debts in tenders open to natural persons. 

The article features an appraisal of the scenario in which an entrepreneur, upon declaring themselves bankrupt, dismisses their workforce without being able to pay compensation for dismissal, nor outstanding salaries at that time, and reveals that, under the present law, workers will be left wholly defenceless.

Amongst his conclusions, worthy of special mention is:

• The current regulatory framework unleashes “genuine folly”, leaving professional creditors powerless at this critical time.
• "Legislative modifications of the utmost urgency in order that professional creditors do not find themselves facing restricted access to public insurance credit policies in this regard.”

Read the complete article by clicking this link:

https://www.expansion.com/juridico/opinion/2024/11/26/6745c3c6e5fdea267e8b4587.html