Working and legal position of the employees of the insolvent debtor and claims of the employees in the case of inslolvency proceedingds of the employer, legal regulations and reality

In Serbia, the Insolvency Law has been applied since 24th January 2010 (The Public Herald of Republic of Serbia no. 104/09). There have been great expectations of the Insolvency Law since the day it was issued. The first evaluations of the new Law have been made just after a year of its application. Since, according to the first paragraph of the Law, the aim of declaring insolvency is the most advantageous collective settlement of the creditors by achieving the greatest possible value of the insolvent debtor, meaning its assets; most of evaluations have been made concerning the successfulness in achieving the primary goal of the Law. However, the initiation of the insolvency proceedings has more than one immediate consequences, and amongst these consequences the one affecting the employees of the insolvent debtor stands out. The initiation of the insolvency proceedings is the reason for canceling of the contract of work being made between the insolvency debtor and his employees. The Insolvency Law contains several regulations concerning the working and legal position of the employees of the insolvent debtor. Also, one part of the Work Law (the part IX) has the following title: 'Claims of employees in the case of the insolvency proceedings'. The position of the employees of the insolvent debtor is not solely determined through the legal regulations. In this paper, it is presented and pointed out how their position is conditioned by real circumstances and how it, as life itself, exceeds and precedes the legal frame.