Employer Insolvency in Switzerland
When a Swiss employer becomes insolvent, the unemployment insurance (ALV) protects employees by paying up to four months of outstanding wages. But the claim must be filed within 60 days, a deadline many employees miss, losing their entitlement. Here is what to do immediately.
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The Insolvency Benefit (Insolvenzentschädigung)
The insolvency benefit (Art. 51–58 AVIG) covers outstanding wages for the 4 months preceding the bankruptcy opening, up to 80% of the insured wage (capped at the ALV maximum insured salary of CHF 148,200/year). It also covers outstanding holiday pay and overtime from the same period. The application must be filed with the cantonal unemployment fund (ALK). Documents required: employment contract, last 3 payslips, wage arrears statement, bankruptcy documents.
The 60-Day Deadline
You must apply within 60 days of learning of the employer's insolvency (bankruptcy opening, debt collection notice, or clear evidence of sustained inability to pay). This deadline is absolute, missing it forfeits the claim. From the date you receive notice, start the 60-day count immediately. The 60-day clock does not pause for weekends or holidays. In parallel, register your wage claim with the bankruptcy office (Konkursamt) as a creditor, you are a 3rd class creditor and recovery may be partial.
Pension Fund and ALV
Your BVG pension fund capital is protected: pension fund assets are legally segregated from the employer's balance sheet and cannot be seized by creditors. Your pension savings are safe. However, if your employer has failed to pay BVG contributions in recent months, the pension fund (Ausgleichskasse or Auffangeinrichtung) may need to be notified. After insolvency: you can immediately claim ALV (unemployment benefit), apply to the RAV on the first day of unemployment.
Frequently Asked Questions
How much does the insolvency benefit pay?
80% of the insured wage for the last 4 months before the bankruptcy opening, up to the ALV maximum (approx. CHF 12,350/month gross in 2026).
Do I also need to register as a creditor with the bankruptcy office?
Yes. The insolvency benefit (from ALV) covers 4 months. For any older unpaid wages or other claims, you must separately register as a creditor with the Konkursamt. Recovery from bankruptcy proceedings varies, often little or nothing for 3rd class creditors.
Is my pension fund money at risk if my employer goes bankrupt?
No. BVG pension fund assets are legally separate from the employer's assets and are not part of the bankruptcy estate. Your pension savings are protected even if the employer becomes insolvent.
Federal Law on Old-Age and Survivors' Insurance (AHVG/LAVS) · Swiss Federal Social Insurance Office (FSIO/OFAS) · admin.ch