European Employment Law Cases

Case Reports

EELC 2018/41 Spanish Supreme Court now aligned with ECJ’s case law: Limitation to pre-transfer liabilities for new contractor under CBA-led transfers that triggers a non-asset based transfer are not valid (SP)

Keywords Transfer of undertaking, Miscellaneous
Authors Luis Aguilar
Author's information

336073 Luis Aguilar
Luis Aguilar is an attorney-at-law at Eversheds Sutherland in Madrid, Spain and associate professor of Employment Law at IE University in Madrid, Spain.
  • Abstract

      Following the ECJ’s decision in Somoza Hermo – v – Ilunion Seguridad, C-60/17 (Somoza Hermo) of 11 July 2018, all eyes were on the Spanish Supreme Court. Since 2016, the Court has ruled a number of times that limitations to the liability of the new contractor established in a collective bargaining agreement (‘CBA’) in the context of a CBA-led transfer were valid (see e.g. EELC 2018/21). Somoza Hermo established that a CBA-led transfer that entails a non-asset-based transfer is a transfer within the meaning of the Acquired Rights Directive. Now the Supreme Court (in a decision dated 27 September 2018 taken with one dissenting opinion) is clear that its doctrine must be reviewed and has therefore held that limitations on pre-transfer liability for a new contractor under a CBA-led transfer that trigger a non-asset-based transfer, are not valid.

Please sign in to access the article



Did you receive an activation code but no access yet? Please activate your code here.

Forgot your password? Request new password.

Purchase access

You can purchase online access to this article. You will receive 24 hrs access @ € 17,50 (excl. VAT).

24 hrs access € 17,50 (excl. VAT)

Activate your code

If you have an access code, please activate it here.