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Workers receive their wages

Facing Lack of Funding Due to Lilium's Bankruptcy, Employees Left Uncompensated. Nevertheless, Federal Employment Agency Provides Relief.

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Faced with Lilium's twin bankruptcies, employee salaries were left unpaid. Yet, the Federal...
Faced with Lilium's twin bankruptcies, employee salaries were left unpaid. Yet, the Federal Employment Agency has altered its position.

The Good News for Ex-Lilium Employees: Insolvency Benefits Granted

Workers receive their wages

Celebrations all around! Ex-Lilium employees can heave a sigh of relief now - after months of financial woes!, rejoices Florian von Brunn, Bavarian SPD's economic policy spokesperson. "Score one for the social market economy", he adds, "It requires commitment to the social aspect."

Back in April, the SPD Bavaria advocated for a re-examination of the insolvency claim. You might recall, flying taxi manufacturer, Lilium, filed for insolvency again in February, following a 200 million euros deal gone south. Initial filings in October 2020 under the old company name left the employees empty-handed.

SPD successful in leveraging insolvency law knowledge

Good news arrived this week for the employees who found out the Federal Employment Agency had reversed its negative decisions. The SPD banks on the Federal Social Court's case law that a new insolvency event is assumed in the case of a company takeover, thus, granting a claim for the money due.

SPD legislator and lawyer, Sabine Gross, expressed her delight saying, "I'm overjoyed my proficiency in insolvency law has come in handy for Lilium employees, who've found themselves in a tricky spot through no fault of their own." Sebastian Roloff, Munich SPD's federal representative, shared moving tales of the hurdles employees faced post-insolvency. Highly skilled professionals had to rely on their savings, while others had to sell their personal belongings to make ends meet after moving to Germany.

Civilization Update:

In the world beyond, latest news suggests there's trouble brewing for CustomCells, a German battery cell manufacturer. They've filed for insolvency proceedings affecting their primary units in Itzehoe and Tübingen, after the downfall of their primary client, Lilium. This escalating mess has reportedly caused financial instability for CustomCells employees as well.

Unfortunately, the specific details regarding the insolvency benefits tailored for Lilium employees in Bavaria are not abundant. Nonetheless, in Germany, employees can claim several months of unpaid wages and other benefits under the Insolvency Compensation Act (Insolvenzgeld) when their employer becomes insolvent. For the most accurate and up-to-date information, refer to official communications from Lilium, the insolvency administrator, or the Federal Employment Agency.

Lastly, while the SPD's involvement is not explicitly documented in the latest news reports, they've traditionally been strong advocates for workers' rights in insolvency cases. Here's hoping their advocacy continues to bear fruit for more workers in need!

  1. The success of the SPD in leveraging their knowledge of insolvency law has led to insolvency benefits for Lilium employees in Bavaria, providing much-needed financial relief.
  2. In the broader business and policy-and-legislation landscape, the situation at CustomCells, a German battery cell manufacturer, mirrors that of Lilium, as they too are experiencing financial struggles due to insolvency proceedings.
  3. As the general news continues to unfold, it is crucial for employees affected by insolvency to stay informed about their rights and potential benefits, such as unpaid wages and other compensations outlined in the Insolvency Compensation Act (Insolvenzgeld).

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