Case no. A 135-08, ref. no. 37-09: The Labour Court held that the employer's negligence not to initiate consultations with the employee trade union which four of the employees were members of and the company was bound to through a collective bargaining agreement, constituted a violation of Section 11 of the Employment (Co-Determination in the Workplace) Act (1976:580), since the company's decision to shut down the entire business and give notice of termination to all employees doubtlessly constituted a significant change of the company's business activities. Further, the Labour Court held that the company had not shown any circumstances which could lead to that the exemption rule ("extraordinary cause") could be applied. Due to the fact that the company had not fulfilled its obligation to consult, and not in any other way informed or contacted the employee trade union before giving notice of termination to the employees, the Labour Court ruled that the company was liable to pay damages amounting to SEK 100,000 (app. EUR 10,000), due to serious negligence of the obligation to consult.
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Liability to pay damages due to negligence to consult before shut down of business
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