Insolvency Compensation in the Event of a Business Transfer

Facts

The thirteen employees of M. AG did not receive their wages for several months. On 1 December 1997, M. AG concluded a purchase and transfer agreement with T. AG. A large part of the employees then terminated their employment without notice. The Public Unemployment Insurance Fund of Basel-Landschaft rejected the employees' applications for insolvency compensation. The Insurance Court of the Canton of Basel-Landschaft upheld the appeals and referred the matter back to the Unemployment Insurance Fund to examine the individual requirements for entitlement. The Unemployment Insurance Fund then filed an administrative court appeal.

Considerations

The Federal Court decided that the transfer regulation pursuant to the revised Art. 333 CO and the institution of insolvency compensation do not mutually exclude each other. Regardless of whether there is a business transfer within the meaning of Art. 333 CO, the employees can claim insolvency compensation, provided the requirements pursuant to Art. 51 UIA in relation to the…