EFFECTS OF THE CASE LAW FROM THE EUROPEAN COURT OF JUSTICE (ECJ RULING C-311/13) ON WORKERS RIGHTS IN CASES OF EMPLOYER INSOLVENCY

The issue of the insolvency of the employer emerges as being an increasing challenge in labour relations. The wages earned by the employee are not only unpaid in such event but also represent his economic sustenance and the protection of his rights to livelihood and security. The loss of social security contributions from employers represents reduced social security revenues for the State. It also entails losses on Personal Income Taxes by the State Tax Administration Agency (AEAT) and financial loss of the sums paid by Salary Guarantee Fund (FOGASA) for subsidiary civil liability. This study analyses the impact on the recent European Court of Justice (ECJ) preliminary ruling regarding the European rules on workers' rights in case of insolvency of their employer, in a case in which the employee resided illegally in the Netherlands and was employed by a Dutch employer. When the employer stopped paying his salary and became insolvent, the Dutch Employee Insurance Agency (UWV) refused this request to receive unemployment benefits.