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What happens to employees when a company goes bankrupt?
When a company files for bankruptcy, employees may face immediate layoffs or job insecurity. In the case of Party City, CEO Barry Litwin announced that today marks the last day for corporate employees. Employees may receive severance packages, but this varies by company and situation.
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How can workers protect themselves during corporate downsizing?
Workers can protect themselves by staying informed about their company's financial health and exploring options like updating their resumes and networking. It's also wise to understand their rights regarding severance and unemployment benefits, which can provide some financial cushion during transitions.
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What are the legal rights of employees in bankruptcy situations?
Employees have certain legal rights during bankruptcy, including the right to receive unpaid wages and benefits. However, these rights can be complicated by the bankruptcy process. It's advisable for employees to consult with a legal expert to understand their specific rights and options.
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How to find new job opportunities after a company closure?
After a company closure, employees can find new job opportunities by leveraging job search websites, attending job fairs, and utilizing professional networking platforms like LinkedIn. Additionally, reaching out to former colleagues can lead to potential job leads and referrals.
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What support is available for employees affected by layoffs?
Employees affected by layoffs can access various support services, including unemployment benefits, job placement services, and career counseling. Many companies also offer outplacement services to help former employees transition to new jobs.
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What should employees do if they are not paid after a bankruptcy filing?
If employees are not paid after a bankruptcy filing, they should first contact their HR department for clarification. If issues persist, they may need to file a claim with the bankruptcy court to recover unpaid wages, as these claims are often prioritized in bankruptcy proceedings.