COLLECTIVE REDUNDANCY : COURT CLARIFIES LAW IN CASE OF DEATH OF EMPLOYER.

Directive 98/59/EC on collective redundancies does not preclude national legislation according to which the termination of contracts of employment as a result of the death of an employer is not classified as "collective redundancy". This is the conclusion of a ruling issued by the EU Court of Justice, on 10 December, in response to a request for a preliminary ruling by a Spanish court.

This case (C 323/08) concerns Rodriguez Mayor and six other employees of a company, who lost their jobs following the death of their employer,aRafael de las Heras Davila, who had not drawn up a will. The company ceased trading, all heirs at law having renounced succession. The employees brought action before the Social Court No 25 in Madrid for unfair dismissal, but their claim was dismissed. They then contacted the appellate court. The High Court of Justice in Madrid decided to stay the proceedings and to refer several questions to the Court of Justice for a preliminary ruling.

The ECJ recalls that "the concept of collective redundancies within the meaning of [...] Directive 98/59 presupposes the existence of an employer who contemplated such redundancies and who is capable, first, to carry out, for that purpose, the acts referred to in Articles 2 and 3 of the directive and, second, to effect, where appropriate, such redundancies".

It adds that Directive 98/59/EC "harmonises, not the detailed rules governing the definitive termination of an undertaking's activities, but the procedure to be followed when collective...