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Part of the ‘establishment’? Latest opinion from the Advocate General

26-01-2015

Last week the Advocate General delivere his opinion on the meaning of establishment for the purposes of the collective consultation obligations in redundancy situations. While the opinion is not binding on the ECJ, the good news for business is that the opinion confirms that “establishment” does not have to mean the whole undertaking:it should mean the unit that the workers are assigned to where they carry out their duties. The opinion, also makes it clear that it is for the Member States to implement more favourable protection if they wish.

As the opinion does not have to be followed, we therefore still have some time to wait until a final decision is made to clarify the position, which means further uncertainty for now.


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