Friday 21 February 2020

No more bonuses for bosses of bankrupt firms: new law

bankrupty rate

The Dutch parliament is set to ban bosses from taking a bonus from bankrupted firms.

Labour MP Jeroen Recourt is expected to win a vote on Tuesday for a law to stop companies using bankruptcy to sack staff then restart under a new name with cheaper workers, reports NOS.

Employees will have an official role in influencing how the bankruptcy of their employer is handled, and must be represented before, during and after the business failure.

The new proposals should replace the current 1893 law, which only defends creditors, and will also prevent the leaders of a failed firm from taking a bonus. ‘This will mean an end to this scandalous practice,’ Recourt told NOS.

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