A Social Fund dismissed an employee of retirement age due to staff reduction. Following her dismissal, the woman registered with the Employment Center but was not granted unemployed status or assigned benefits.
Due to her advanced age, finding a new job proved significantly difficult. Consequently, the former employee applied to the Employment Center for a certificate required to receive severance pay for the third month after her redundancy.
Although the Social Fund initially paid the benefit, it later challenged the legality of the Employment Center’s certificate, filing a lawsuit to invalidate the document. The fund’s arguments included the woman’s receipt of a pension, lack of dependents, and ownership of property.
Nevertheless, courts of three instances rejected the Social Fund’s claim and sided with the Employment Center. Their decision was based on the following:
- The Employment Center is authorized to decide on the payment of severance pay to a redundant employee for the third month after dismissal and to issue a corresponding certificate to the employer only in exceptional cases and under specific circumstances;
- In this particular case, such exceptional circumstances included: loss of primary income, inability to find employment due to advanced age, and the applicant’s credit obligations.