Today (August 25, 2020) the main insolvency proceedings have been opened concerning assets of Wirecard AG on the grounds of over-indebtetedness and illquidity. By the end of November 2020 the insolvency administrator has to publish the first detailled offical report on the remaining assets of Wirecard AG. With regard to the evaluation ot the enormous volume of data and payment transactions, the insolvency administrator will disclose important results on the remaining assets, even though not all registered claims of Wirecard AG’s creditors will be evaluated by then.
In addition and due to the circumstances of the insolvency proceedings, the insolvency administrator announced to cut 730 jobs at Wirecard. In the event of insolvency proceedings, different regulations might apply regarding notice periods for employees and social plans. However, neither the protection against unlawful dismissal and the enforcement of reasonable claims, nor the social selection will be ineffective due to an ongoing insolvency proceeding. Especially in extreme situation with a great impact to medial dimensions the security of claims resulting from the employment relationship are often unclear and should not be overlooked.
Also the works counsel of Wirecard AG is faced with considerable decisions regarding it’s employees in listing of names, and sufeguarding the workface as well as decisions regarding transfer and affiliated companies and safeguarding the workface.
If you are affected by the insolvency proceedings and its consequences, feel free to contact us about further information for your legal opportunities.