Alongside the money for work already done, a second fate is decided: that of the employment contract itself. It carries its own deadlines, and they do not coincide with the two months for the application.
The employment contract in insolvency does not end by itself
Insolvency does not terminate the contract automatically. The administrator may terminate on a shortened notice period, and three weeks remain to challenge it.
✓ Verified: 02/08/2026
WHAT TO DO
DOCUMENTS 3
› Details and tips
👨🏻💻
Max recommends:
I stopped going to work when I heard about the insolvency and thought that obvious. The contract was still running, though, and I had to explain my absences.
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Lea recommends:
Keep the two strands apart: money for past months runs through the agency, the fate of the contract through the administrator. The deadlines differ and run at the same time.
FREQUENTLY ASKED QUESTIONS
Does the contract end when proceedings open? ▾
No. The opening of proceedings does not end the employment relationship. It continues until one side terminates it, and the obligations under it remain.
What notice period applies in insolvency? ▾
The insolvency code provides that the contract may be terminated regardless of an agreed term or an exclusion of ordinary termination; the notice period is three months to the end of the month unless a shorter period governs.
What if the termination looks defective? ▾
Then the general employment deadline applies: a claim must be filed with the labour court within three weeks of receiving the written notice. That deadline is strict and does not depend on the insolvency proceedings.
Is a damages claim worthwhile where the administrator terminates? ▾
The law provides that the other side may claim damages for the early ending as an insolvency creditor. Whether that pays in practice depends on what there is to distribute in the proceedings at all.