There was unimaginable fall-out in financial markets recently . Japan too was not different.
Bear sterns, J.P. Morgan ,Merry Lynch , Citi-group and biggest of all Lehman !.
Bear sterns, J.P. Morgan ,Merry Lynch , Citi-group and biggest of all Lehman !.
Example of Lehman was very classic ,while employees were down with week-end hang-over they woke up with the bankruptcy news. Initially there was a ambiguity about whats gonna happen ,to the extent that whether even current months salary would be paid ?
After little exploring it shows what happens to employees in such circumstances –
- Firm files bankruptcy in court.
- Court monitors , dispose of assets and use incoming cash to pay off creditors.
- Taxes comes first
- Then employee claims are paid.
- Lastly outside creditors are taken care off.
So as long as firm is solvent and have enough assets , employee will be paid surely for the billable hours.
Normally pension is safe ( In case of Japan at-least ) but for health insurance you need to refer to your agreements.
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