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)
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.
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