EU: ECJ subtly defines when the decision of the parent company sets off the obligation to consult workers

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rday, September 10, the European Court of Justice introduces details, sometimes subtle, on when the obligation to consult workers in the event of mass layoffs decided by the parent company. According to the Court, the obligation starts when “a strategic or commercial decision compelling him [the employer] to contemplate or to plan for collective redundancies has been taken.” Besides, the obligation only starts when the affected subsidiary is identified. Finally, the parent company can only make the permanent decision to force the subsidiary to apply the layoffs after the end of consultation. (Ref. 090826)



Facts. During a meeting on December 7, 1999, the board of the Fujitsu siemens Computers holding company decided to make a proposal to the board of directors for the divestiture of a Finnish factory belonging to one of its subsidiaries.

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