Rejection of the claim for severance pay based on Panamanian law

Facts

The Spanish national A. worked as a welder for the Swiss company X. SA, which took over A.'s employment relationship as of May 1, 2000. On December 23, 2004, X. SA terminated A.'s employment contract effective March 31, 2005.

A. filed a claim against X. SA before the Civil Court of Veveyse, concluding for the payment of a severance indemnity equivalent to six months' salary, i.e. 31,045.50 euros or 50,240 Swiss francs, invoking Panamanian Law No. 8 of February 26, 1998 on maritime and waterway work.

The Federal Tribunal upheld the appeal of X. SA, annulled the cantonal judgment and dismissed the action brought by A. against X. SA.

Considerations

According to the Federal Tribunal, the conditions for the application of Article 19 PILA allowing the consideration of an overriding mandatory provision of a third State are not met in this case.

Although Article 56 of Panamanian Law No. 8 is an overriding mandatory provision granting a severance indemnity to a dismissed seafarer without just cause, the Federal Tribunal considered that the worker's interest in obtaining this indemnity cannot be considered legitimate and prevailing in view of the Swiss conception of the…