Polish Supreme Court rules that employees of subsidiary company should be treated equally
The Polish Supreme Court has ruled that an employee who received a severance payment lower than that paid to employees in a parent company had been treated unfairly.
The case concerned two voluntary redundancy programmes, where an employee in a subsidiary company was offered a lower severance payment than that paid to employees under a similar programme at the parent company. The two companies were closely linked in terms of organisational and financial structure and, crucially, it was the parent company that financed the severance payments made by the subsidiary. In its ruling, the Supreme Court stated that the parent company had abused its position in the group structure and consequently the employee had the right to compare his situation to that of the employees of the parent company. As such, the principle of equal treatment had been violated in relation to the employees of the subsidiary.
- Ruling of the Supreme Court of 18 September 2014, case file No. III PK 136/13
For further information, or to discuss any of the issues raised, please contact Roch Pałubicki on +48 61 856 04 14 at Soltysinski Kawecki & Szlezak.
Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this article. For further legal information see our legal page.
Circular 230 disclosure
To ensure compliance with requirements imposed by the IRS and other taxing authorities, we inform you that any tax advice contained in this article (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
If you would like to copy or otherwise reproduce this article then you may do so provided that: (1) any such copy or reproduction is for your own personal use or if it is made available to any third party it is done so on a free of charge basis; and (2) the article is reproduced in full together with the contact details, disclaimer and any logos as they appear on each article.