SOCIAL POLICY : ECJ SHEDS LIGHT ON REDUNDANCY COMPENSATION.
| Position | European Union Court of Justice |
A social plan may provide for a reduction in the redundancy compensation paid to workers approaching retirement age. Such a measure does not run counter to a ban on any discrimination based on age, says the EU Court of Justice (ECJ). It may be justified by the objective of granting compensation for the future, protecting younger workers and facilitating their reintegration into employment, whilst taking account of the need to achieve a fair distribution of limited financial resources in a social plan.
The ECJ delivered its ruling on 6 December 2012 in Case C-152/11 after a request from a German court. At issue is a social plan...
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