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I've seen first-hand that companies don't always do this.

Perhaps once a company files bankruptcy there's more oversight with this ... but before that happens, I've absolutely seen a company trying to cover its ass and limit its legal expenses by closing out unpaid invoices and stiffing their staff.



Norway has (had? I moved to the UK a decade ago) a great protection against this: Be late with payroll and any employee could have the company bankrupted without paying a fee. All it took was filing a form.

Now, of course, at the bankruptcy hearing the company might be able to pay money due to staff and avoid being put under administration and shut down, but it's a very effective way of ensuring companies keep on the good side of their staff when cash gets tight.

Taxes also pay for a fund that covers back payment of salary for up to 6 months in the case of a bankruptcy where staff have been more lenient, and so provides both a safety net and a reason for staff to be more accommodating if there's hope of improvement.


Yes, there is much more oversight with formal bankruptcy proceedings.

Anything is possible, and from what the OP describes, the highest likelihood is that there is no cash to pay ANYONE.




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