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The Insolvency Protection Directive''
2008/94/EC
is an
EU Directive The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been ...
concerning the protection of employees in the event of insolvency of an employer. It replaced Directive 80/987/EC and 2002/74/EC in turn.


Contents

The recitals of the Directive state its purpose is the protection of employees, in the interests of ‘balanced economic and social development’. It makes reference to the Charter of Social Rights for Workers 1989. In particular, recital 8 contains a declaration of the law's ‘social purpose’. *article 1(2) ‘Member States may, by way of exception, exclude claims by certain categories of employee from the scope of the Directive, by virtue of the special nature of the employee’s contract of employment or employment relationship or of the existence of other forms of guarantee…’ *article 3, ‘Member States shall take the measures necessary to ensure that guarantee institutions guarantee, subject to article 4. *article 4, payment of employees’ outstanding claims resulting from contracts of employment or employment relationships, including, where provided for by national law, severance pay on termination of employment relationships. The claims taken over by the guarantee institution shall be the outstanding pay claims relating to a period prior to and/or, as applicable, after a given date determined by the Member States.’


Member state law

In the United Kingdom, the relevant implementing legislation is found in the Employment Rights Act 1996. Under section 166 any employee may lodge a claim with the
National Insurance National Insurance (NI) is a fundamental component of the welfare state in the United Kingdom. It acts as a form of social security, since payment of NI contributions establishes entitlement to certain state benefits for workers and their famili ...
Fund for outstanding wages. In Italy, the Directive gave rise to ''
Francovich v Italy ''Francovich v Italy'' (1991) C-6/90 was a decision of the European Court of Justice which established that European Union Member States could be liable to pay compensation to individuals who suffered a loss by reason of the Member State's fail ...
''(1990) C-6/90 on the principle of member state liability for non-implementation of EU law.


See also

* EU law * UK insolvency law * UK labour law *''
Francovich v Italy ''Francovich v Italy'' (1991) C-6/90 was a decision of the European Court of Justice which established that European Union Member States could be liable to pay compensation to individuals who suffered a loss by reason of the Member State's fail ...
'' (1990) C-6/90


Notes

{{reflist Insolvency United Kingdom labour law European Union directives 2008 in the European Union 2008 in labor relations