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Romania / Constitutional Court / 64/2015

Filiala Hidroelectrica Hidrosind din București și Sindicatul Hidroelectrica Hidrosind din București

Policy area:
Employment and social policy
Deciding Body type:
National Court/Tribunal
Decision date:

Key facts of the case:

The constitutionality issue was raised in respect to a series of collective redundancies based on Article 86 (6) of Law no 85/2006 on the insolvency procedure. This article allows for an exception to the Labour Code, Law nr. 53/2003, and in the first part it states that when an insolvency procedure is started, the body overseeing the procedure can dismiss the employees of the company without the need to undergo the collective redundancies procedure and in the second part it states that employees would receive only 15 days’ notice when dismissed under such circumstances.

The constitutionality issue was raised in a number of cases pending before national courts, in which former employees were dismissed under this provision and they challenged its constitutionality. They were represented by their trade unions. The courts referred the constitutionality questions to the Constitutional Court, which was asked to rule on the constitutionality of Article 86 (6) of Law no 85/2006 on the insolvency procedure.

Outcome of the case:

The Constitutional Court declared the first part of Article 86 (6) of Law no 85/2006 on the insolvency procedure to be unconstitutional. That is the part which allows companies undergoing insolvency to bypass the collective redundancies procedure. The second part of this Article 86 (6), which requires the employer to give 15 days’ notice when dismissing an employee was declared constitutional in respect to the arguments raised.