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Accelerated wage guarantee procedure in bankruptcy estates

If an employer is declared bankrupt, the bankruptcy estate may, with the consent of the KEHA Centre, apply for employees’ claims that have been jointly ascertained by the bankruptcy administrator and the pay guarantee authority under the so‑called accelerated pay guarantee procedure. The aim of the procedure is to ensure that employees’ final settlements can be paid by the end of the two‑week notice period.
Pay guarantee paid will be recovered from the employer or the employer’s bankruptcy estate, with interest, and returned to the state.
The bankruptcy estate submits a single application covering the wages of all employees. Payslips and a summary of the claims must be attached to the application.

The KEHA Centre pays the claims to the bankruptcy estate, which then pays the wages to the employees and handles the remittance of tax withholdings and distraints. Pay guarantee can only be paid into the bankruptcy estate’s account, not, for example, into a law firm’s client funds account.

Key steps in the procedure

  • The bankruptcy administrator must without delay notify the KEHA Centre of the commencement of the bankruptcy by email at palkkaturva@keha-keskus.fi.
  • The KEHA Centre will inform the bankruptcy administrator by email of the person responsible for handling the matter.
  • Before submitting the application, it is important that the bankruptcy administrator and the payroll accountant familiarise themselves with the instructions.
  • It is recommended that the payroll accountant contact the KEHA Centre before preparing the payslips.
  • The KEHA Centre reviews the payslips prior to the submission of the application.
  • The bankruptcy administrator must hear the employees or their representative regarding the claims to be applied for under the pay guarantee.

The application must also include the signatures of any liable partners and of the sole trader, or an explanation of how they have been heard.

Submitting the application

The employer’s bankruptcy estate may apply for pay guarantee via the electronic services portal. The use of the service requires strong electronic identification (for example, online banking credentials or a mobile certificate). It is recommended that the bankruptcy administrator initiates the process, after which they may, if necessary, invite other users to continue completing the application.

If necessary, the application may also be submitted by post or sent via secure message.

Instructions