IEF: Allocation of Surcharges According to the Construction Workers' Holiday and Severance Pay Act

IEF-Service GmbH enables private individuals throughout Austria to fully compensate for outstanding surcharges under the Construction Workers’ Leave and Severance Pay Act when the employer company is insolvent and these claims cannot be realized otherwise. As a state guarantee institution, the Insolvency Compensation Fund acts as a direct sponsor and assumes 100% of the claims regulated under the General Social Insurance Act (ASVG). Funding is provided to employees, former employees, freelance service providers, home workers, as well as their heirs, provided that insolvency proceedings have been opened over the employer’s assets or a dismissive decision according to the Insolvency Code exists. The application deadline begins with the opening of insolvency proceedings or upon knowledge of a rejecting court decision and is six months. An examination is carried out in accordance with the requirements of the Insolvency Compensation Security Act (IESG).

For the application, the fully completed application form, the court claim registration, and all standard documents required according to the checklist must be submitted. Submission can be made electronically via ID Austria or in paper form through the offices of IEF-Service GmbH. The procedure includes obtaining statements, review by specialist departments, and the final issuance of the decision followed by payment to the specified account. Thanks to unlimited funding, affected persons always have regulated protection of their outstanding wage claims available, thereby contributing to mitigating the social consequences of an insolvency situation.