Research On The Labor-Credit Protection In The Bankrupt Enterprise

When the liquidation of enterprise bankruptcy, it is important to protect the labor creditor’s rights, such as wages, social insurance expenses and compensation for the maintenance of social order, and to protect the rights and interests of the weak. The labor creditor’s right is divided into three kinds of discharge order, which is equal to the common creditor’s rights, priority to guarantee creditor’s right and priority to the ordinary creditor’s rights. Relevant laws in China follow the settlement pattern that a labor claim takes precedence over ordinary creditors, but inferior to secured creditor. Under this model, although labor claims get a certain degree of protection, but there are some problems such as mechanical procedure of liquidation order, no clear scope of labor claims, very difficult to protect the rights and interests of labor creditor in bankruptcy procedure, lack of priority protection system of labor creditor’s rights, therefore,we should further revise and improve the enterprise bankruptcy law in China, clarify the scope of labor creditor’s rights, limit priority payment standard of labor claims, subdivide the priority level of protection of labor claims, establish and perfect the labor credit insurance and fund system.