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The claim is based on work performed in an employment relationship. An employment relationship means an arrangement where an employee performs work on behalf of the employer under the direction and supervision of the employer in return for remuneration.
The employer has not paid overdue remuneration on time. Each claim has its own due date based on law, collective agreement or employment contract, at which time the employer is obliged to pay the claim.
The application has been submitted to a TE Centre or an ELY Centre by the deadline. The application must be submitted within three months of the due date of the claim.
The employer is insolvent due to a reason such as bankruptcy. An employer is insolvent when, for instance, it is unable to pay its distressed debts or has failed to pay withholding taxes or employer contributions on time.
Limitations
Because the claim must be based on work performed in an employment relationship, wage guarantee is not provided to self-employed persons or entrepreneurs, partners of general partnerships, general partners of limited partnerships or managing directors of limited liability companies or cooperatives.
The maximum amount of claims paid as wage guarantee is EUR 15,200 based on the work performed for the same employer.
For a justified cause, the wage guarantee authority has the right to refuse wage guarantee or take the amount of wage guarantee to be paid under consideration in the following situations:
The employee’s claim is based on a contract or arrangement which was clearly made in order to obtain wage guarantee.
The claim applied for as wage guarantee is obviously disproportionate to what is to be considered reasonable in view of the work done and other circumstances.
The employee is repeatedly applying for claims on the same employer as wage guarantee.
