The company I work for is going to close. What now?

"THE The company I work for is going to close. And now?"

What happens when the company closes?

Firstly, with the closure of the company, the employees' employment contracts are terminated at the employer's initiative. This termination results in the end of the employment relationship between the employee and the employer.

It is important to know that this termination occurs immediately, directly affecting the employment relationship.

The company has the responsibility to officially communicate the closure to employees. This communication should include information about the reasons for the closure, deadlines for payment of severance pay, and any relevant administrative procedures.

It is essential that employees are aware of the big picture so they can make informed decisions about their professional future.

Despite the closure, employees have their rights guaranteed.

What are the rights?

When you are laid off due to a company closure, you are entitled to a variety of severance pay.

Late Salaries: The employee has the right to receive all wages due, including any arrears. This includes the last salary before the termination of the contract and previous wages that are outstanding.
Holidays and 13th Salary: The proportional amounts for vacations and the 13th salary are also due to the worker, calculated according to the length of service.
Prior Notice: The notice period determines a period of notice in cases of dismissal. If the company chooses not to comply with the notice period, it must make payment for that period. If the employee resigns, he or she can either serve the notice period or have the amount deducted from his or her salary.
Unemployment Insurance: Unemployment insurance is a benefit offered by the Federal Government to workers who have been dismissed without just cause. The company must provide the necessary documents so that the employee can apply for this benefit.
Severance Pay Guarantee Fund (FGTS): The FGTS must be paid in full, with the company bearing the fine of 40%.

What to do?

a empresa onde trabalho vai fechar. E agora?

Facing the closure of the company where you work is not easy, but being informed and taking proactive measures can help minimize the impacts of this situation.

Find out what you should do as soon as you receive news of the closure.

Know Your Rights

First of all, it is essential to understand what your labor rights are.

As mentioned, the company must comply with legal obligations regarding termination payments, including back pay, proportional vacations, 13th salary, advance notice and the full withdrawal of FGTS with a fine of 40%.

Documentation

Gather all documents related to your employment, such as contracts, pay stubs, vacation slips, and any communication from the company about the closure.

These documents will be essential to prove your situation and ensure that you receive your rights properly.

Keep Communication

Establish effective communication with company management.

Look for information about the termination process, deadlines for payment of labor rights and other important details.

Maintaining an open channel of dialogue can facilitate mutual understanding and speed up the process.

Consult a Professional

Considering the legal complexity involved in closing a company, it is highly recommended to consult an attorney specializing in labor law.

An employment lawyer is the best way to help you at this time. The professional can guide you on your specific rights, help you negotiate with the company and, if necessary, represent you in a lawsuit.

Update your Resume and Networking

When your company closes, it is important to start preparing for new opportunities.

Update your resume on Linkedin and highlight your skills and experiences, and be open to expanding your professional network.

Participating in events in your area and using online platforms can be effective strategies.

Why does a company declare bankruptcy?

Businesses can face significant challenges that, in some cases, culminate in the painful decision to declare bankruptcy.

Understanding the reasons that lead a company to take this measure is essential for entrepreneurs, investors and professionals who want to stay up to date with the day-to-day running of the company they work for.

1. Financial Management Problems

Inadequate financial management is one of the biggest villains to a company's success. enterprise.

Poor allocation of resources, lack of expense control and poor cash flow management can lead to irreversible financial difficulties.

2. Excessive Debt

Going into debt beyond your ability to pay is a common trap.

Companies that fail to manage their debt risk falling into a vicious cycle, compromising their operations and long-term viability.

3. Fierce Competition and Lack of Differentiation

In highly competitive markets, the lack of a unique proposition and effective differentiation strategies can lead to decline.

Companies that fail to stand out face difficulties in attracting and retaining customers.

4. Changes in the Business Environment

Sudden changes in the economic, regulatory or technological environment can significantly impact companies’ operations.

Those that fail to adapt quickly risk becoming obsolete or unable to compete.

5. Legal and Juridical Issues

Legal issues, such as lawsuits, employment disputes or regulatory violations, can drain financial resources and undermine a company's reputation.

If not addressed properly, these issues can lead to financial collapse.

Final Considerations

Closing a company is a challenging time, but it is essential that workers are aware of their rights and act quickly to ensure they receive their severance pay.

If you or someone you know is facing the closure of their company, don't hesitate to seek professional guidance.

A lawyer specializing in employment law can be essential in ensuring that your rights are respected during this process.

What about you? Have you ever gone through a bankruptcy at the company you worked for? Leave your opinion in the comments. Take the opportunity to read our content about: I got fired, and now I have 5 ideas for extra income at home.

Content Team Theadmin December 14, 2023

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