Facts
The case concerns a porter and kitchen assistant named [B.], who had been employed at Hotel [A.] in Geneva since August 1959. Until 1974, the hotel belonged to a woman P., who operated it herself. The building was then sold to a real estate company, while the hotel itself was transferred to another company (X. SA), which took over the management. [B.] retained his position as a porter. In September 1982, X. SA ceased the hotel operations. The shares of the real estate company and the assets of Hotel [A.] were sold to the City of Geneva, which then made the hotel available to the Association for the New Hotel... (the Association). The Association took over the telephone number and some customers of the old hotel, but only employed two or three of the former staff, including B.
X. SA terminated B.'s employment on September 30, 1982, on the grounds that Hotel [A.] was being closed. However, on the recommendation of X. SA, [B.] was subsequently employed by the Association from October 1, 1982, at the same salary. On January 28, 1983, the Association terminated B.'s employment contract again, effective February 28, 1983, as it was dissatisfied with his performance. It refused to pay him a severance allowance, as he had only worked for a short time.
Considerations
The Federal Court ruled that [B.] was entitled to a severance allowance under Article 57 of the Collective Bargaining Agreement for the Hospitality Industry (L-GAV). This provision provides for such compensation if an employee who is at least 50 years old leaves after 15 years or more with the same employer or in the same establishment. It is irrelevant whether the employment contract was formally with the same…