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Your assignment is to prepare and submit a paper on two problem questions on constitutional law of european union.
Your assignment is to prepare and submit a paper on two problem questions on constitutional law of european union. The UK believes the section of the Directive has been drafted in too broad terms and it, along with a number of other member states, has been seeking clarification as to the technicalities of the possible operation of the guarantee scheme. There has never been any legislation in the UK on protecting workers pension payments by establishing financial guarantee institutions. A recent change of government, along with a worldwide recession, also mean that the UK is now opposed to the pension protection scheme in principle and, if it introduces the pension protection scheme, it will legislate to limit protections up to a ceiling of 5,000 pounds and restrict claims to those made within two weeks of an employers insolvency. The Commission has been examining the questions from Member States but has confirmed that it expects Member States to meet their obligations under the whole of the Directive.
Adils security guard company becomes insolvent and he is made redundant after 30 years service and pension payments. He is told his pension fund is at risk and that he cannot pursue his employers in court for his pension guarantee as there is no money left in the pot after the company was wound up. A law student has told him that he may be able to enforce his EC law rights by other means. He comes to you for legal advice.
Adil has been working in the security guard company for about 30 years. The fact that the specific firm had to be dissolved – because of the lack of funds for the continuation of the business activities – cannot justify the loss of pensions of employees – at least such a case would not be fair for employees that have invested all their pension funds on a specific corporate pension scheme. The problem is that existing UK law does not provide a specific legal framework that protects employees in cases of insolvency of their firm.
