80 percent increase

Bankruptcies: Chamber of Labor helped over 1300 Carinthians

Employees suffer twice in insolvencies: they have to fear for their job and their money.

(Bild: DOC RABE Media - stock.adobe.com)

80 percent more cases than in the previous year at the Chamber of Labor's insolvency protection association. On average, around 8,000 euros were claimed per case and 530,000 euros in emergency aid was paid out.

The insolvency protection association of the Carinthian Chamber of Labor asserted over 10 million euros in claims last year. "1,326 employees contacted us, which is the highest number since 2016," explains AK President Günther Goach. "It's about unpaid wages, severance payments or applications for insolvency compensation."

Unfortunately, benefits from the federal insolvency pay fund can take up to six months. "The day-to-day costs remain, which is why we have been offering emergency insolvency assistance since 2017. We can provide up to 3,000 euros within three days," says Goach. This is an interest-free advance - almost 530,000 euros were paid out to 232 Carinthians in 2024. "Money that was urgently needed for rent, food and energy!"

AK President Goach, AK Director Kißlinger & Head of Department Diamant (2nd from left) with his team.

(Bild: AK Kärnten/Helge Bauer)

Even apart from this emergency aid, which is then offset against payments from the fund, there was a lot for the Chamber of Labor to do. "The figures have skyrocketed. Compared to 2023, there was an increase of around 80 percent, and compared to 2019, there was still an increase of 45 percent. Unfortunately, the trend for this year looks similar," explains Herbert Diamant, Head of the AK Insolvency Department. "On average, each employee received around 8,000 euros - that's two months' salary and a special payment."

When processing insolvency cases, the AK professionals often come across gross injustices. "In one particular case, an employee was wrongly classified. A repayment of almost 93,000 euros was achieved," says Diamant.