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14th September 2020
Employment & Immigration

Op-Ed: “Transfer of insolvent undertakings and restriction on transferee’s pension obligations” by David Martínez Saldaña

The Court of Justice in its judgment TMD Friction (joined cases C-674/18 and C-675/18), has responded to several preliminary rulings requested by the Federal Labour Court of Germany (Bundesarbeitsgericht) in a case in which the rules on the transfer of undertakings (Council Directive 2001/23) and insolvency (Directive 2008/94) must be interpreted together. The main facts of these joined cases are the following:

Pursuant to a company’s collective bargaining agreement, Textar granted its employees a pension under a supplementary occupational pension scheme. In accordance with that scheme, the amount of the retirement pension for each year of acknowledged service is between 0.2% and 0.55% of their monthly gross remuneration. However,

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