Bankruptcy court helps displaced workers

A Beijing court that has been helping enterprises deal with restructuring and liquidation has also been assisting their employees to find new jobs.

"Enabling people whose employers are facing business difficulties to get compensation or find new jobs is a major issue in handling bankruptcy cases, as better placement is conducive to family harmony and social stability," said Li Qian, a judge from the Beijing No 1 Intermediate People's Court.

She made the remark on Wednesday as the court released its five-year achievements in solving bankruptcy disputes.

Data released by the court showed that its bankruptcy tribunal, which was established in late January 2019, has concluded 580 cases, 19 of which involved large enterprises.

In 2022, for example, the tribunal resettled more than 3,000 employees of a large auto company while tackling its liquidation, according to Li.

"We first informed the workers that their employer was facing bankruptcy, and then asked them, one by one, what they wanted — to seek a job with a similar car company or to leave with compensation," she said.

"Most of them chose re-employment in the automobile industry, with a small number of people who eventually terminated their labor contracts with the employer getting compensated."

The placement was completed within three months, Li said.

Ma Qiang, president of the court, said the efficient handling of bankruptcy cases aims to serve the capital's high-quality development and build a sound business environment.

Thanks to the judicial efforts, the tribunal has revived nearly 80 companies on the verge of bankruptcy over the past five years, securing 96,000 jobs, he said.

In addition to the tribunal in Beijing, more judicial teams specializing in bankruptcy have been set up across the country, including in Shanghai and Shenzhen, Guangdong province.

The Supreme People's Court, the nation's top court, said in March that 29,000 bankruptcy cases were concluded last year, up 68 percent year-on-year.

A total of 762 struggling enterprises survived, securing 118,000 jobs.

The Standing Committee of the National People's Congress, China's top legislature, said early this year that the Enterprise Bankruptcy Law is expected to be revised to deepen reform and accelerate the creation of a new pattern of development.