2026-06-22
State aid intended for employees of bankrupt companies must reach people quickly, but it is equally important that it be calculated and allocated correctly. An audit of the 2025 accounts of the Guarantee Fund conducted by the National Audit Office revealed that employees of bankrupt companies may be receiving higher payments from the fund than they are entitled to.
The auditors found that the insolvency administrators of a bankrupt employer, when submitting employees’ claims for approval to courts or creditors’ meetings, may not be verifying them properly, and the amounts are being presented without deducting applicable taxes. Such errors may not only result in employees receiving higher payments than they are entitled to, but may also harm the interests of other creditors.
“It is the state’s duty to ensure that employees who have lost their jobs due to their employer’s insolvency receive the benefits to which they are entitled in a timely manner. However, it is equally important that this assistance be allocated fairly, reasonably, and accurately. When the system allows for the approval of unfounded claims, it puts at risk not only public funds but also public trust and the legitimate interests of other creditors. Therefore, transparency and reliable oversight in this area are essential,” says Auditor General Irena Segalovičienė.
The audit showed that this is not an isolated problem
During the control procedures carried out last year, SODRA identified inaccurately calculated amounts in nearly one out of every three cases and contacted insolvency administrators or the courts to have the data corrected.
Although this prolonged the payment deadlines, the additional verification helped prevent an average potential overpayment of 1,100 euros per employee (about 38 percent of the amount approved for each person). These are very significant figures, considering that more than 9,000 people received such payments last year alone.
The cause of the risk: some control measures were discontinued
The National Audit Office notes that, following changes to the procedures for administering the Guarantee Fund effective from 6 January 2026, the practice of conducting additional checks on data submitted on the basis of court rulings and resolutions of creditors’ meetings was discontinued. As a result, risks previously managed regarding potential overpayments are no longer fully under control.
In the auditors’ view, it is essential to ensure that employees’ claims are determined and confirmed consistently and accurately throughout the entire process—from the assessment conducted by the insolvency administrator to the allocation of payments from the Guarantee Fund.
The goal is to prevent potential overpayments
The National Audit Office recommended that SODRA and the Ministry of Social Security and Labour take measures to ensure the management of risks associated with inaccurate employee claims and to reduce the likelihood of potential overpayments in the future.
While long-term solutions are being sought and legal regulations are being refined, it was agreed to implement a temporary risk management measure - additional data verification against the Register of Persons Insured under State Social Insurance and the Recipients of State Social Insurance Benefits. If necessary, the administrator of the Guarantee Fund will contact insolvency administrators, courts, or creditors’ meetings regarding adjustments to planned benefit payments.
The National Audit Office emphasises that active cooperation among all institutions involved in the process is essential for a long-term solution to the problem. To ensure that state guarantees for employees are implemented accurately and transparently, the involvement of the Chamber of Insolvency Administrators, the Audit, Accounting, Property Valuation, and Insolvency Management Service, and the National Court Administration is crucial.