The bankruptcy of company will affect the future of its workers. They will lose their source of income because an insolvent company is no longer able to fulfill the obligation of payment of wages for workers. Although the worker was placed as a preferred creditor who already has the privilege to get the first priority in the process of corporate bankruptcy, company as an insolvent debtor can not pay bills sometimes its debts, in the form of salaries and severance payments to its workers as preferred creditors. Moreover, if the company’s property is only sufficient for the repayment of debt to separatist creditor who get the position to take precedence for the repayment of debts. In such conditions, workers will not receive payment of the wages they are entitled because of their position as a preferred creditor is under separatist creditor. This paper is aimed to analyze the legal position of labor as a preferred creditor toward separatist creditor in the process of corporate bankruptcy and the legal protection of the government for workers as preferred creditor to get the payment of wages and severances