Type: Judgment

Authority: European Authorities: Euopean Union' Court of Justice

Date: 06/28/2012

Subject: The Court declared that Article 45 TFEU and Article 7(4) of Regulation (EEC) No 1612/68, on freedom of movement for workers within the Community, preclude clauses in collective and individual agreements under which a top-up amount such as that at issue in the main proceedings, which is paid by an employer under a scheme of part-time working for older employees in preparation for retirement, must be calculated in such a way that the tax on wages payable in the Member State of employment is notionally deducted when the basis for the calculation of that top-up amount is being established, even though, under a tax convention for the avoidance of double taxation, the pay, salaries and similar remuneration paid to workers who do not reside in the Member State of employment are taxable in their Member State of residence. Such clauses are null and void. Article 45 TFEU and the provisions of Regulation No 1612/68 leave the Member States or the social partners free to choose between the different solutions suitable for achieving the objective of those respective provisions.

Parties: Georges Erny

Classification: Equality - Art. 21 Non discrimination - Solidarity - Art. 28 Rights of workers, employers and their organisations: organisation - Citizens’ rights - Art. 45 Freedom of movement

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