EU: CJEC ruling on Wages Guarantee Funds’ compensation for dismissal agreed under extra-judicial conciliation procedures

The Court of Justice stated that a national legislation can exclude compensation granted for dismissal recognized by an extra judicial conciliation settlement from the wages guarantee fund in the event of insolvency, since it does not include sufficient guarantees for the avoidance of abuse. (Ref. 080150)
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Spanish law excluded compensation for dismissal agreed under extra-judicial conciliation procedures from the benefits covered by the Wages Guarantee Fund (Fogasa) in the event of the insolvency of the employer. The conciliation (*) is concluded before the Centre for Mediation, Arbitration and Conciliation of the place of performance of the services or the place of residence of the interested parties, at the applicant’s choice. Decisions taken during the conciliation constitute final judgment an

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