Insolvency Control Service Pays Out Over Half a Million Euros in Q1 2023 to Satisfy Employee Claims

In the 1st quarter of this year, the Insolvency Control Service has paid out funds in the amount of 560,029 euros from the employee claims guarantee fund to satisfy the claims of 382 employees of 18 insolvent companies. The average amount allocated to cover the claims of one employee in the 1st quarter of 2023 was 1,466 euros, the service informs.

For comparison, in the 1st quarter of 2022, the Insolvency Control Service paid out funds in the amount of 113,980 euros from the employee claims guarantee fund to satisfy the claims of 119 employees of 16 insolvent companies. The average amount allocated to cover the claims of one employee in the 1st quarter of 2022 was 943 euros.

In the 1st quarter of 2023, a total of 474 decisions were made on the satisfaction of employees’ claims, including the refusal to allocate funds for the satisfaction of employees’ claims, on corrections to the decision and on the termination of the administrative case.

The largest amounts from the funds of the employee claims guarantee fund were paid out in the 1st quarter of 2023:

“Latvian-German joint venture “Reho”” MSIA to satisfy the claims of 256 employees in the amount of 370,189 euros;

“Gros Auto” MSIA to satisfy the claims of 21 employees in the amount of 62,761 euros;

“Faberlic Baltija” MSIA to satisfy the claims of 52 employees in the amount of 45,899 euros;

“Kita18” MSIA to satisfy the claims of 17 employees in the amount of 27,429 euros;

“Structural Solutions Contractor” for the satisfaction of the claims of MSIA 6 employees in the amount of 13,966 euros.

In the 1st quarter, the Insolvency Control Service has recovered 27,499 euros in the employee claims guarantee fund. For comparison, in the 1st quarter of 2022, the Insolvency Control Service recovered 77,770 euros in the employee claims guarantee fund.

From the funds of the employee claims guarantee fund, the Insolvency Control Service satisfies employee claims related to wages, compensation for annual paid leave, compensation for other types of paid absence, severance pay due to the termination of employment legal relations, as well as compensation for damage due to an accident at work or occupational disease .