INTRODUCTION

During the insolvency proceedings of the company GRUPO DUHL, S.L. the competent Commercial Court issued an order passing the collective dismissal of the employees of said company.

The employees formulated an appeal objecting to the aforementioned court order in the face of the decision of the Commercial Court.

In their appeal, the employees argued, amongst other things, that an infringement of the effective protection of the court had taken place, derived from the lack of proper defence. The employees deemed that such lack of proper defence existed because of the pending judicial decision between the issue of the court order and the proceedings against the collective dismissal, initiated by each one of the employees before the Labour Courts.

COURT DECISION

In accordance with the High Court of Justice of Andalucía, article 64 of the Insolvency Act establishes a channel for individual objections to collective employment dismissal; it being necessary for such objections to be conducted in the insolvency proceedings. Likewise, the Judgement emphasises that the lawsuits were filed before the Labour Courts subsequent to the declaration of insolvency.

Therefore, the referred to judgement rejects the appeal filed by the employees.

CONCLUSION

In the scope of insolvency proceedings, employees may not object to collective dismissal proceedings in a jurisdiction other than that of the Commercial Courts until the insolvency proceedings are conducted.

 

 

Vilá Abogados

 

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11th of April 2013