What if the company closes down and the boss is unable to pay compensation

You can apply for labor arbitration, or bankruptcy liquidation.

Legal analysis

Company closure, you can apply for bankruptcy liquidation. The company in accordance with the bankruptcy liquidation procedures, after repaying the bankruptcy costs and *** benefit debt, priority repayment of the bankrupt's owed employees' wages and medical, disability benefits, pension costs, owed should be transferred to the employee's personal account of the basic old-age pension insurance, the basic medical insurance costs, as well as laws and administrative regulations should be paid to the employee's compensation. If the property of a one-person limited liability company cannot be separated from the personal property of the shareholders and is mixed together, the shareholders shall be liable to continue to repay the debts of the company. Having the ability to pay wages, but refusing to pay, will be suspected of the crime of refusing to pay labor remuneration. The crime of refusing to pay labor remuneration refers to the act of avoiding to pay labor remuneration to workers by transferring property, hiding, or other methods, or failing to pay labor remuneration to workers when capable of doing so, with a relatively large amount, and still failing to pay after being ordered to do so by the relevant government departments. The criterion for filing a case is to evade payment of labor remuneration to a worker by transferring property or hiding, or to fail to pay labor remuneration to a worker despite having the ability to do so, and the amount is relatively large, and the failure to pay is despite an order from the relevant government department. The subjective aspect is manifested as intent, including direct intent and indirect intent. That is, the subjective knowledge of their own non-payment of labor remuneration of such inaction will produce the social consequences of the workers can not get the actual remuneration of labor in a timely manner, but hope or let such consequences occur.

Legal Basis

Enterprise Bankruptcy Law of the People's Republic of China Article 113 The bankruptcy estate shall, after giving priority to the payment of bankruptcy expenses and ****beneficial debts, be liquidated in accordance with the following order: (1) the wages and medical, disability and pension expenses owed to the employees by the bankrupt, and the basic pension insurance and basic medical insurance expenses owed to the employees that should be transferred to their personal accounts basic pension insurance, basic medical insurance expenses, and compensation that should be paid to the employees as stipulated by laws and administrative regulations; (ii) social insurance expenses other than those stipulated in the preceding subparagraph owed by the bankrupt and taxes owed by the bankrupt; and (iii) ordinary bankruptcy claims. If the bankruptcy property is insufficient to satisfy the claims of the same order of satisfaction, it shall be distributed in proportion. The salaries of directors, supervisors and senior management of a bankrupt enterprise are calculated in accordance with the average salary of the employees of that enterprise.

Article 276 of the Criminal Law of the People's Republic of China shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention, or control; if the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years. Article 276: Anyone who, by transferring property, going into hiding or other means, evades payment of a worker's labor remuneration or fails to pay the worker's labor remuneration when he or she has the ability to do so, in a relatively large amount, and fails to do so despite being ordered to do so by the relevant government department shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall be fined concurrently or singly; and if the consequences are serious, he or she shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years, and shall be fined concurrently. If a unit commits the crime in the preceding paragraph, the unit shall be sentenced to a fine, and its directly responsible supervisors and other directly responsible persons shall be punished in accordance with the provisions of the preceding paragraph. With the first two paragraphs of the act, has not yet caused serious consequences, before the filing of the indictment to pay the labor remuneration of the workers, and according to the law to bear the corresponding liability for compensation, can reduce or exempt from punishment.