Protections of Employees' Rights in the Insolvencies of EU-based Enterprises

Abstract

This master thesis analyses the protection of employees’ rights in the insolvencies of EU- based enterprises within the framework of European Union insolvency and labour law. The research examines the development and structure of the EU legal framework governing employee protection in insolvency proceedings, with particular focus on Directive 2008/94/EC. The thesis further analyses employees’ monetary claims, wage guarantee institutions, continuity of employment during restructuring, transfer of undertakings, pre-pack procedures, and employees’ collective participation rights within insolvency processes. The research demonstrates that employees occupy a particularly vulnerable position in insolvency proceedings because they are economically dependent on remuneration and possess weaker institutional influence compared to secured creditors and financial stakeholders. Although the EU has established important minimum protection standards, significant divergences continue to exist between Member States regarding the scope and effectiveness of employee protection. The research further established that the central challenge of modern EU insolvency law lies in balancing restructuring efficiency with effective social protection of employees.