ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)131
Vol.1979/0066

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(79)131 final
Brussels.21March1979
AMENDMENT TOTHEPROPOSAL FORACOUNCILDIRECTIVE
ONTHEAPPROXIMATION OFTHELAWSOFTHE
MEMBERSTATESCONCERNING THEPROTECTION
OFEMPLOYEES INTHEEVENTOFTHE
INSOLVENCY OFTHEIREMPLOYER
(presentedbytheCommissiontotheCouncilpursuant
tothesecondparagraphofArticle149oftheEECTreaty)
A.
•. ■ ■ \
V- \
.V"1.'^^
C0MC79)131final

INTRODUCTION
1.OnApril1978theCommissionforwardedaproposalforaCouncildirective
ontheapproximation ofthelawsoftheMemberStatesconcerninngthe
ProtectionofEmployeesintheEventoftheInsolvencyoftheirEmployer
(1).
2.TheEconomicalandSocialCommitteedelivereditsopiniononthisdirec­
tiveon29November1978..(Doc,CES1135/78).
TheCommitteeapprovestheaimoftheproposeddirective,namelythat
workersshouldbebetterprotectedintheeventoftheinsolvencyof
theiremployers,independently ofexistingnational ,bankruptcylegis­
lation.IntheCommittee'sviewinsolvencies ofemployershaveaparticu­
larlysevereeffectonworkers,wholosenotonlytheirjobsbutalso
frequentlylosetheirentitlementtopaymentofoutstanding wages,which
theyalreadyearned.
TheCommitteeconsidersthatthefinancialprotectionforworkerspropo­
sedinthedraftdirectiveisintheinterestsnotonlyofworkers'
butalsoofemployersandtheeconomyasawhole.
TheCommitteealsopointsoutthatinmostMemberStatesinwhichmea­
suressimilartothoseproposedhavealreadybeentaken,fundsarepro­
videdsolelybytheemployers. •
MoreovertheCommitteepointsoutthatMemberStates -alsohavethepos­
sibilityoffinancingmeasuresoutofofficialfunds;thatemployers
mustcontributetothefinancingand,-possiblyemployeesmayalsocon­
tribute.TheCommissionhasadoptedthisstandpoint.
4
1)O.J.NoC135/2of9.6.1978

-2-
FurthermoretheCommitteebelievesthatitshouldbelefttoMember
Statestochoosetheform'inwhichemployeescanapplyfortheirout­
standingclaims. *
TheEuropeanParliamentdelivereditsopinionon17January .1979.
AlthoughtheEuropeanParliamentsupportstheinitiativeofthe.
Commission,itproposesanumberofamendments,whichaimatproviding
acomprehensive protectionofemployeesincaseofinsolvencyoftheir
employerinthewidestpossiblesense.ThereforetheEuropeanParliament
V .-, •'•
haspronounceditselfinfavouroftakingintoaccountallclaimsof
employees,itbeingindifferentwhethertheyarisebeforethepnsetor
aftertheemployer'sinsolvency. ' >
TheCommission howeverconsidersthataccountshouldbetakenofthe
factthattheproposedincomesafeguardsnecessitateconsiderablefi­
nancialburdens,whichmustbekeptwitjinquantifiable limits.This
appliesinparticulartothoseMemberStateswhichhaveuptonow
notappliedasystemofthiskind.
Furthermore underArticle8oftheproposeddirectiveMemberStates
mayatanytimeintroduceorapplymeasureswhicharemorefavourable
thanthosecontainedintheproposeddirective.
Forthesamereasons,theCommissiondoesnotfeelabletoapprovethe
amendmentsproposedintheabovementioned opinionoftheEuropeanPar­
liamenttoArticle4(a)(increaseintheminimumperiodofliability
fromthreetosixmonths).
TheproposedamendmentconcerningthebeginningofArticle5(cooperation
betweengovernments andrepresentatives ofbothsidesofindustryin
determiningtheguaranteeinstitutions'structuresfinancingandmethods
ofoperation)hasbeenretained.–
TheEuropeanParliamentalsopronounceditselfinfavouroftheprin­
ciplethattheguaranteeinstitutions shouldbefinancedsolelybycon­
tributionsfromemployers.TheCommissionhoweverfeelsthateachMember
Statesshouldbefreetomakefinancingarrangementsthatareappropriate

toitsowneconomicandsocio-political system.IntwoMemberStates
afinancialcontributionisalsomadebyemployeestothefullsa­
tisfaction ofallconcerned.
TheEuropeanParliamentproposedanadjunctwhichallowstheinsti­
tutiontomakeadvancepaymentsfromtheonsetofinsolvencyofthe
employer.Thisproposalhasbeentakeninconsideration inAr­
ticle5c).
FinallytheResolutionoftheEuropeanParliamentproposesthatthe
reportontheapplicationofthedirectivementionedinArticle10
shouldalsobesubmittedtoParliament.TheCommissionisinfavour
ofthisproposalandArticle10isconsequently amended.

1
AMENDMENTS TOTHEPROPOSAL FORACOUNCILDIRECTIVE
concerningtheprotectionofemployeesintheeventoftheinsol­
vencyofthfeiremployer -.'
«r
Article3oftheproposalshallbereplacedbythefollowingtext:
MemberStatesshalladoptthenecessarymeasuressothatguaranteeinsti-,
tutionsensurepaymentoftheunfulfilled claimsofemployeesarisingbe­
foretheonsetoftheemployer'sinsolvency .
Theseclaimscomprise:
a)unchanged
b)unchanged ^
Article5oftheproposalshallbereplacedbythefollowingtext:.
MemberStatesshall,incooperation withemployers andlabourrepresentati­
ves,adoptthemeasuresnecessarytoensurethesettingup,financing and
methodofoperationoftheinstitutions arebasedonthefollowingprinci­
ples:
a)unchanged -,
b)Employers mustcontribute towardsthefinancingoftheinstitutions ,
thepublicauthorities and,possibly,employees mayalsocontribute .
c)Paymentshallbemadeontheapplication oftheemployeeentitledto
claim.Theinstitutions maymakeanadvancepayment.Applications
shallbeadmissible fromtheonsetofinsolvency andmustbemadewithin
aperiodofsixmonthsthereafter .
d)unchanged
e)unchanged .~ " '
Article10shallbereplacedbythefollowingtext:
Within18monthsfollowingtheexpiryofthe18-monthperiodlaiddown
inArticle9,MemberStatesshallforwardallrelevantinformation tothe
Commissioninordertoenableittodrawupareportontheapplication
ofthisdirectiveforsubmissiontotheCouncilandtheEuropeanParliament .
\