Tuesday, 15 February 2011

Europe: Court of Justice on employee claims in insolvency

Earlier this month the Court of Justice of the European Union gave its opinion in Andersson v Staten genom Kronofogdemyndigheten i Jönköping, Tillsynsmynidigheten (C-30/10). A summary of the opinion has been published here by the ICLR, as part of its WLR Daily Service, and it is from this summary that the following headnote is taken:

A provision of national law which excluded an employee from entitlement under the guarantee of payment of employees’ outstanding claims in the event of their employer’s insolvency, on the ground that the employee within the six months preceding the application for a declaration of insolvency had been the owner of an essential part of the undertaking or business concerned and had had a considerable influence on it activities, was compatible with Parliament and Council Directive 2008/94/EC relating to the protection of employees in the event of the insolvency of their employer".

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