Rejection of the claim for insolvency compensation in the absence of bankruptcy proceedings

Facts

The case opposes the Public Unemployment Insurance Fund of Basel-City (appellant) to K. (respondent) and the Social Insurance Court of Basel-City. The central issue is whether the conditions for granting insolvency compensation to the employer are met, even though bankruptcy has not been opened. The public limited company P. AG, the former employer of the respondent, has not been subject to bankruptcy proceedings despite its manifest insolvency. The respondent has requested insolvency compensation, but her claim has been rejected by the unemployment insurance fund.

Considerations

The Federal Tribunal considers that the legal conditions for the granting of insolvency compensation provided for in Art. 51(1) and 58 UIA are exhaustive. Thus, the respondent should have taken the necessary measures to have the bankruptcy of her former employer opened, which she did not do. Although the company's domicile has been deleted from the commercial register, it remained subject to ordinary bankruptcy proceedings at the registered office. The respondent therefore had the possibility of…