The Supreme Court of Justice’s July 5 2016 decision in Case 6034/13.8TBBRG-N1.S1 examined whether the payment due for the termination of an employment contract as a result of a collective dismissal following an employer’s declaration of insolvency was a debt of the insolvent estate or the insolvent company.
An employee brought an action against the insolvent estate of his former employer, seeking a declaration that the insolvent estate be ordered to recognise the unlawfulness of his dismissal. The employee also asked the court to recognise him as a creditor of the insolvent estate for the compensation awarded for his dismissal.
The former employer’s insolvent estate argued that the dismiss…
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