Pay security limitations

The maximum amount of claims payable as pay security is EUR 19,000 based on the work performed for the same employer. No maximum amount has been set for seamen's pay security.

Working time bank claims have their own maximum amount in pay security which is equivalent to six months' salary paid to the employee for work performed for the employer. This also applies to seamen.

The amount of pay for waiting time shall not exceed the amount of claims paid as wage guarantee from whose delay the obligation to pay for waiting time arises.

Travel or other expenses incurred by the employee in connection with the performance of work that must be compensated by the employer are paid as pay security, provided that these expenses are ordinary in nature and their amount is reasonable.

The employee's right to pay security is also limited by regulations intended to prevent misuse of the system. For justifiable reasons, pay security authorities have the right to deny pay security or consider the amount of the pay security in the following cases:

• The employee claim is based on an agreement or arrangement, which was apparently made for the purpose of receiving pay security.
• The claim applied for as pay security is apparently disproportionate to the amount which can be considered reasonable where the work performed and other circumstances are concerned.
• The employee repeatedly applies for pay security claims involving the same employer.
• The employee remained in the employment relationship even after he/she should have been aware of the fact that the employer was unable to fulfil its salary payment obligations.

For justifiable reasons, the pay security may also be limited to the amount which the employer paid to the employee for the year prior to submitting pay security application as a claim arising from an employment relationship.