Clause 1, Article 54 of the Law on Bankruptcy 2014 provides as follows:
Where a judge issues a decision declaring bankruptcy, the assets of the enterprise or cooperative shall be distributed in the following order:
“(a) Unpaid wages, severance allowances, social insurance and health insurance of the employees and other benefits by the executed labor contracts and collective labor agreement;
(b) Bankruptcy costs
(c) Debts arising after the commencement of the bankruptcy procedure which serves the purpose of business recovery of the enterprise or cooperative;
(d) Financial obligations to the State; unsecured debts payable to the creditors named in the list of creditors; secured debts that remain unpaid due to the value of the assets being insufficient to repay them”.
Therefore, when an enterprise goes bankrupt, its assets will be divided in the decision to declare bankruptcy in the order of asset division. Including the employee’s salary debt (Priority Order 2) and the employee still has the right to enjoy the money during the working period according to the contract between the two parties.