Loongarantieregeling

The wage guarantee scheme protects employees against non-payment of wages upon their employer’s insolvency. The UWV assumes payment of arrears of wages, holiday pay and pension contributions up to a prescribed maximum, pursuant to the Social Insurance Financing Act.

The scheme is of particular relevance given the frequency of insolvencies, which would otherwise leave employees without income. Employees need not commence proceedings against the bankrupt estate themselves, but may submit an application directly to the UWV.

In practice, the scheme is most commonly invoked in respect of smaller undertakings where the trustee in bankruptcy lacks sufficient assets. The UWV subsequently recovers the sums paid from the estate as a preferential creditor.