Prepare the file for the next action
Put the order, source, evidence and responsibility into a short chronology.
Insolvency proceedings
Employment in insolvency: review termination, wages and documents
Review employment in insolvency: administrator authority, termination route, wages and documents under section 25 IO.
Your insolvency law team
BRANDAUER Rechtsanwälte
Insolvency law, Salzburg and throughout Austria
We review the procedural status, contracts, payment records and security, then explain which legal question needs to be addressed next.
3 September 2026, Mag. Bernhard Brandauer, Rechtsanwalt
The opening of insolvency proceedings does not by itself answer every question about an employment relationship. The employer role, work performed, termination route and unpaid remuneration must be documented separately.
Under section 25 IO, the insolvency administrator exercises the employer’s rights and duties. The possible termination route depends on different procedural events; a generic deadline assumption is therefore unsafe.
This article separates the employment-law review from ordinary claim filing and from the realisation of the business.
Organise the employment file
Which document answers which question?
Employment, proceedings and remuneration need separate evidence.
| Proceedings | Opening order, edict, hearings and later orders | Which event controls the next step? |
| Work performed | Employment contract, service note, schedules and records | What work and period are documented? |
| Termination | Notice, resignation, delivery and protective rules | Who terminated on which basis? |
| Remuneration | Payslips, payment records and outstanding amounts | Which item remains unpaid and how is it classified? |
The actual file and current procedural stage remain decisive.
Review the employment file
What is missing for the next decision?
Organise proceedings, employment, termination and remuneration.
Discuss the specific matter with the firm.
Is the relevant procedural event documented?
Your answers
Review the documents
Obtain the missing documents
Do not assume a deadline or effect until the missing document and its date are clear.
Review the dispute separately
Separate undisputed facts, disputed legal questions and the concrete court or out-of-court step.
Section 25 IO separates employer authority and termination
Section 25 IO separates employer authority and termination
Where the debtor is an employer, the insolvency administrator exercises the employer’s rights and duties. The termination route then depends on the procedural events specified in section 25 IO.
Record the opening, public announcement, any order concerning closure, the reporting hearing and any continuation decision with date and source. “Insolvency ends employment” is not a sufficient legal analysis.
Separate work periods and remuneration
Separate work periods and remuneration
Work performed before and after opening should not be merged into one unexplained balance. Contract, work record, payslip, due date and payment belong in a chronology.
The classification of an unpaid item also requires review of its basis, period and connection with the proceedings. Section 47 IO contains priority rules for estate claims; that does not guarantee payment.
Keep termination evidence complete
Keep termination evidence complete
Keep the wording, delivery, date and signatory of every notice or resignation. Where special employment protection applies, the required court or authority step cannot be replaced by an internal note.
Employment-law validity and insolvency classification can raise separate questions. Preserve the contract, applicable collective rules, remuneration records and every procedural step.
Do not assume automatic termination: Review the procedural event, work performed, termination route and remuneration separately.
FAQ
Common questions about employment in insolvency
Does employment end when insolvency opens? +
No. Section 25 IO provides a specific review and links termination to statutory conditions and procedural events.
Who exercises the employer’s rights? +
Where the debtor is an employer, the insolvency administrator generally exercises the employer’s rights and duties. The actual procedural stage remains relevant.
Is every unpaid wage an estate claim? +
No. Work period, basis, due date and connection with the proceedings must be reviewed. Section 47 IO also contains priority rules for estate claims.
Which documents should be secured first? +
Opening and later orders, the employment contract, work records, payslips, payments, notices and proof of delivery.
Next steps
Connect the procedural stage to the next step
Filing an insolvency claim
Connect filing, examination hearing and dispute.
Insolvency administrator first review
Organise opening data, estate and information duties.
Request legal review
Submit the order, claim and open decision.
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Topics
EmploymentInsolvencyTerminationWagesDocuments
Would you like us to review a claim, owned goods or a decision in a business crisis?
Tell us your role, the business concerned and the procedural status. We respond within one business day.
Direct line to the firm.
Address
BRANDAUER Rechtsanwälte GmbH Giselakai 51 5020 Salzburg
Phone
+43 662 6280000