European Law – GradSchoolPapers.com

QUESTION:
1. Matthew is a UK citizen employed by Mega Bank in Germany as an associate analyst, with a gross salary of €200,000/year. European Union Directive 2012/65 on the banking sector includes a
provision requiring Member States to create a compensation mechanism for banking industry workers in case their employer goes bankrupt. The Directive explicitly covers outstanding wages owed to
employees and was to be transposed by all Member States by 31/12/2014. Germany has not done so to date.
After a disastrous merger with a competitor in 2015, Mega Bank filed for bankruptcy in September 2016. Following the bankruptcy of Mega Bank, Matthew was left without a job and owed 6 months wages
worth €100,000, plus a possible €1,000,000 bonus for his performance in 2015. Matthew wants to claim the outstanding wages from Mega Bank but the current German bankruptcy laws forbids him from
doing so, because only employees with a gross salary below €50,000/year can claim for any compensation for outstanding wages.
Advise Matthew of the possibility of enforcing his rights under the EU Directive 2012/65 through direct effect or indirect effect

 

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