Bankruptcy declaration alone does not terminate employment contracts signed after the declaration.
Poland (PL)
Legislator summary
AI generatedThe Supreme Court dismissed the cassation appeal filed by a former employee against a regional court's award of severance pay. The employee argued that the employer's bankruptcy should have triggered a statutory severance payment for his second employment contract, which was terminated after the bankruptcy declaration. The court ruled that while the bankruptcy caused the total liquidation of the company, it could not serve as the specific cause for terminating a contract signed after the declaration was made. Consequently, the termination was based on general economic reasons under the relevant labor law, not the bankruptcy event itself.
Legislator headnote
AI generatedArt. 1 ust. 2 ustawy z dnia 28 grudnia 1989 r. o szczególnych zasadach rozwiązywania z pracownikami stosunków pracy z przyczyn dotyczących zakładu pracy; The declaration of an employer's bankruptcy alone does not constitute the cause for terminating an employment contract concluded after such declaration.