ILO - Austria Insolvency & Restructuring 12/08/2011

Insolvenz und Sanierung

Court rules that company pensions are not always safe in case of insolvency

Company pension commitments to employees should be secured in case of the employer´s insolvency. If (contrary to legal requirements) such pension securities are not held separately from the employer´s other securities, the statutory pledge for securing company pensions cannot fulfil the hedging purpose prescribed by law. Therefore, if the employer acts unlawfully, the security mechanism prescribed by law is to no avail. 


Alexander

Dr. Alexander Isola

M.C.J. (NYU) Partner
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