On July 2nd, the insolvency administrator UŽT announced the expected termination of employment for all 38 workers. According to a representative for UŽT, Milda Jankauskienė, the workforce reduction affects various roles, including 16 tailors, 8 seamstresses, 4 garment and other product cutters, and 3 production workers. The mandated dismissals are legally grounded in Article 62, paragraph 2 of the Labour Code, which governs the termination of employment contracts when an employer undergoes insolvency, referencing Article 62, paragraph 1 of the Insolvency Law of legal entities.
This staffing action occurs amid broader economic difficulties within the region. For instance, a separate entity that had planned to open a restaurant in Kaunas has filed for bankruptcy after accumulating significant debts. In such instances, shareholders have reportedly made the decision to initiate bankruptcy proceedings.
The legal framework dictates that the dismissal of these employees must adhere strictly to the conditions outlined in Article 62, paragraph 2 of the Labour Code, effective from the current year. These actions underscore the direct impact of corporate insolvency on the workforce, resulting in the termination of contracts for all affected employees as the company navigates bankruptcy procedures.
Topics: #insolvency #all #employees
