If the company goes bankrupt, the bankrupt property will first compensate the employees for their income after paying off the bankruptcy expenses and public welfare debts. Payment order of employees' due income: employees' wages, medical care, disability allowance and welfare expenses, basic old-age insurance, medical insurance expenses that should be included in employees' personal accounts, and compensation that should be paid to employees according to laws and administrative regulations. When a company goes bankrupt, the bankruptcy property will first compensate employees for their due income after paying off bankruptcy expenses and public welfare debts. Payment order of employees' due income: employees' wages, medical care, disability allowance and welfare expenses, basic old-age insurance, medical insurance expenses that should be included in employees' personal accounts, and compensation that should be paid to employees according to laws and administrative regulations. (The compensation is calculated according to the calculation length: one month's salary for one year, one month's salary for less than one year and six months, and one month's salary for less than six and a half months). If the bankruptcy property is insufficient to pay off the same order, it shall be distributed in proportion.
legal ground
Article 132 of the Enterprise Bankruptcy Law of the People's Republic of China. After the implementation of this Law, before the date of promulgation of this Law, the wages, medical care, disability allowance and pension expenses owed by the bankrupt to the employees, the basic old-age insurance and basic medical insurance expenses owed to the employees from personal accounts, and the compensation payable to the employees according to laws and administrative regulations shall be stipulated in Article 109 of this Law.