Friday, April 15, 2011

EP hearing on protection of workers in insolvency cases

Should the EU provide more protection to workers whose companies go bust? At present it obliges member states to pay employees outstanding wages in case of insolvency. However, the payment ceiling, the definition of an "employee" and the period for which outstanding claims are paid are decided nationally and there are big differences between member states. With the number of insolvent businesses needing help in guaranteeing wages rising 20% in 2009, an Employment Committee hearing Wednesday discussed whether there should be more coordination at EU level.

British Conservative Julie Girling, who is drafting a report on insolvency proceedings in the context of EU company law, said the EU has succeeded in creating a minimum standard of protection for workers who have lost their jobs and have not been fully paid. "If something's not broken, don't try fix it. If for example in Belgium 98% of the claims are met, we have to ask where is the problem?"

Harmonisation could hurt competition - MEP

She is concerned that greater harmonisation could have a negative impact on competitiveness and does not consider it necessary to guarantee a minimum figure at EU level.

However, a representative from the European Trade Union Confederation (ETUC) was concerned about whether the rules provide enough protection for all workers, in the context of the economic crisis and the increasing risk "that companies are becoming unable to meet their duties towards their employees." For a large number of workers unpaid wages exceed the payment ceilings and time limits set by member states, Wiebke Warneck, a legal advisor from ETUC said.

The Commission is reviewing the implementation and application of the rules and "will continue to monitor this issue very closely" but has no plans to update the directive at present, a representative said.

Source Press room - European Parliament

More information Press room - European Parliament

linked programmes:

> More European grants

EU states are encouraged to implement national programmes for Roma integration

A report adopted by the European Commission calls for implementing national strategies aiming at integrating Roma population socially and economically. Roma population represents 10 to 12 million of people in Europe.

Youth enemployment: european efforts are required

Several proposals aiming at tackling youth unemployment are on the agenda at the European Parliament: a "European Investment Plan", reallocating EU structural funds for youth employment and a "European Youth Guarantee".

The European Parliament is funding your projects!

The European Parliament’s Communication DG has just launched a new grant programme, which will fund projects aiming at improving citizens’ knowledge of the role and functioning of the European Parliament. This 2012 - 2014 programme was...

Pre-accession assistance instrument (IPA): seven Western Balkan countries are given the possibility to participate to large scale flooding exercise in Croatia

During four days, exercises simulating a large scale flooding are organized in Zagreb for civil protection intervention teams from seven Balkan countries.

The EU launches a pilot phase on European project bonds

A pilot phase on European project bonds was decided today between the Council of the European Union and the European Parliament. This remains an important milestone, and the Danish presidency has therefore played an important role in the efforts t...

Subscribe to our Newsletter

Need an advice?
To place an order?

Contact
Marine Rossi at

33 (0)1 42 54 60 64

Click here to ask me your question in live