The company's bankruptcy will be heard in court, and the employees, whose debts are the first order of compensation, can apply directly to the court with other workers to participate in the lawsuit and claim the company's outstanding wages.
If the company does not go to court to apply for bankruptcy, according to Article 7 of the Bankruptcy Law, the debtor has the circumstances stipulated in Article 2 of this Law, can be submitted to the People's Court for reorganization, reconciliation or bankruptcy liquidation application. The debtor can not pay off the debts due, the creditors (employees who are owed wages or other expenses are) can apply to the people's court for reorganization or bankruptcy liquidation of the debtor.
Another situation is that the company is not bankrupt, just closing part of the factory. If the relocation is beyond the original contractual workplace, it is generally possible to require the company to pay back wages and economic compensation. Employees will be paid according to Article 47 of the Labor Contract Law Economic compensation is paid to the worker according to the number of years the worker has worked in the organization, with one month's salary for each full year. If more than six months is less than one year, it shall be calculated as one year; if less than six months is less than one year, the economic compensation shall be paid to the laborer in the amount of half a month's salary. If the worker's monthly wage is more than three times the average monthly wage of the workers in the region for the previous year as announced by the people's government of the municipality directly under the central government or of the city that has set up the district where the employer is located, the standard for paying him or her economic compensation shall be paid at the rate of three times the average monthly wage of the workers, and the maximum number of years for which economic compensation shall be paid to him or her shall be no more than twelve. The monthly wage referred to in this article refers to the average wage of the worker in the twelve months before the labor contract is canceled or terminated.