Research On Legal Issues Of Priority Repayment Of Bankrupt Labor Claims

In recent years,China’s economic development mode ushered in the transformation,the industrial structure has also been optimized and upgraded,followed by a large number of enterprises were eliminated by the market,towards bankruptcy.Once an enterprise goes bankrupt,it will lose its qualification as a market operator,which means a large number of employees face unemployment.Therefore,the settlement order of labor creditor’s rights of ordinary employees in the bankruptcy procedure is not only related to the distribution of property in the bankruptcy procedure,but also closely related to the life of ordinary employees,affecting the social stability and the development of the country.The Enterprise Bankruptcy Law of the People’s Republic of China has established that the labor creditor’s right is the first priority to pay off,but the priority is lower than the bankruptcy property with guarantee.In addition,in practice,there is a lack of supporting protection mechanism for the repayment of labor claims,and the actual compensation rate is not satisfactory.The priority of liquidation of bankruptcy labor creditor’s rights not only reflects the protection of the right to survival,but also maintains social stability,conforms to the spirit and requirements of policy-oriented,and is the realistic demand of the company’s long-term development.Regrettably,there are still some problems in this system in China,which lead to a reduction in the implementation effect.On the entity side,the scope of priority protection is not clear,the priority settlement is difficult,and conflicts with the right of separation.In terms of procedures,the way for employees to attend the creditors’ meeting is not clear,the workers’ representatives do not enjoy the right to vote,and the trade union lacks independence.In order to protect the rights and interests of bankrupt workers,we should work in two ways.On the one hand,we should clarify the scope and level of the priority payment from the substantive law,improve the guarantee mechanism of bankruptcy salary,and further clarify the settlement rules of the right of separation and the priority of labor creditor’s rights.On the other hand,it clarifies the way for workers to attend the creditors’ meeting from the procedural law,endows the workers’ creditors with the right to vote,and ensures the trade union to protect the legitimate rights and interests of workers independently and impartially.