When a company faces bankruptcy, employers must follow a specific legal procedure: notify the state employment service 2 months before partial layoffs or 3 months before mass layoffs, inform each employee in writing with their signature confirmation (or witness-signed act if refused), issue termination orders with employee acknowledgment, record entries in labor books citing relevant Labor Code articles (p.3 ch.1 st.77 for voluntary resignation, p.2 ch.1 st.81 for employer liquidation), and provide statutory severance payments including wages for worked days, one month's average salary, and compensation for unused vacation, with payments continuing for 2 months (3 months if registered with employment service).
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