Company Bankruptcy and Reorganization: Employee Severance Priorities
Employee claims in Argentine corporate bankruptcy enjoy special statutory priority and accelerated 'Pronto Pago' court procedures under Law 24,522, ranking ahead of commercial debts.
Is your employer filing for bankruptcy or reorganization?
File your accelerated Pronto Pago petition with Lead Attorney Dr. Guillermo Conti:
Essential Legal Distinctions
- Labor Claims Hold Absolute Priority: Paid ahead of commercial vendors, banks, and tax claims under Arts. 241/246 LCQ.
- Pronto Pago Unlocks Early Funds: Bankruptcy courts authorize monthly payouts without waiting for full liquidation.
- Direct Claims Against Corporate Officers: Fraudulent asset stripping exposes corporate directors to joint personal liability.
1. Labor Claim Priorities in Bankruptcy (Bankruptcy Law 24,522)
When an employer files for reorganization (concurso) or bankruptcy (quiebra) in Argentina, employee wage and severance claims enjoy statutory super-priority under Bankruptcy Law 24,522:
- Special Priority (Article 241 LCQ): Six months of unpaid wages and full severance pay take precedence over company machinery, inventory, and equipment.
- General Priority (Article 246 LCQ): Claims attach with preference over general company assets, ranking ahead of commercial suppliers, bank loans, and tax debts.
2. Accelerated Labor Payment Procedure (Pronto Pago - Art. 16 LCQ)
Employees do not have to wait years for bankruptcy liquidation. Under the statutory Pronto Pago mechanism (Article 16 LCQ), bankruptcy courts order the trustee to allocate up to 3% of gross monthly income directly to disburse worker severance claims on an expedited basis.
Frequently Asked Questions
Do I get severance if my company files for bankruptcy?
Yes. Bankruptcy does not eliminate severance under Article 245 LCT; employee claims rank first in statutory priority.
What is 'Pronto Pago' in Argentine bankruptcy?
An accelerated court procedure authorizing early severance disbursements before general creditor distributions.
What if directors stripped corporate assets prior to bankruptcy?
Piercing the corporate veil under Corporate Law 19,550 allows enforcing severance claims directly against directors' personal assets.
Is there a deadline to file proof of claims?
Yes. Bankruptcy courts establish strict verification deadlines (Article 32 LCQ) requiring prompt legal appearance.