Evolving protections in collective redundancies : analysing recent ECJ decisions and their impact on employers, employees, and trade unions in EU labour law

Abstract

The Collective Redundancies Directive (98/59/EC) remains a central instrument of European labour law, balancing the employer’s freedom to restructure with the protection of employees against the consequences of large-scale dismissals. This dissertation analyses how the Court of Justice of the European Union (CJEU) has shaped the Directive through its jurisprudence and examines the resulting impact on national legal systems, with Germany and Malta serving as case studies. The study demonstrates that the CJEU has expanded the Directive’s scope and clarified key concepts such as “worker”, “dismissal”, “establishment” and “controlling undertaking”. Landmark rulings including Junk v Kühnel, Balkaya, Bichat, AEK, Resorts Mallorca and MO v SM illustrate the Court’s role in strengthening procedural safeguards and reinforcing consultation obligations. While these judgments promote uniform protection, they also create tensions for employers, particularly in jurisdictions where national traditions diverge from the Court’s interpretation. The comparative analysis reveals significant differences in implementation. German law provides strong worker protection but generates uncertainty and litigation risks through its complex procedures and strict sanctions. Maltese law, by contrast, offers efficiency and predictability, though often at the expense of meaningful worker participation. These findings highlight the Directive’s partial harmonisation and the continuing variation in worker protection across Member States. The dissertation concludes that reform is necessary to ensure clarity, proportionality, and effectiveness. Recommendations include harmonising sanctions, clarifying definitions, enhancing consultation rights, and addressing challenges posed by digitalisation, platform work, and cross-border restructurings. Future research should explore the role of European Works Councils, the impact of algorithmic management, and protections for non-standard workers. The Directive, while pioneering, requires recalibration to remain fit for today’s labour markets and to maintain a fair balance between flexibility for employers and protection for workers.