Compilation of decisions of the Committee on Freedom of Association

Collective bargaining15

Closure of the enterprise and application of the collective agreement

1. The closing of an enterprise should not in itself result in the extinction of the obligations resulting from the collective agreement, in particular as regards compensation in the case of dismissal.

1. In a case related to insolvency and bankruptcy proceedings, the Committee considered that insisting on full compliance with the provisions of the collective agreement might threaten the continued operation of the enterprise and the maintenance of the workers jobs.