Judgment - Satversmes tiesa

according to Article 85 of the Satversme (Constitution) of the Republic of Latvia
and Article 16 (1), Article 17 (1) Indent 11, and Article19. 2 and Article 28. 1 of the
Constitutional Court Law,
on 20 May 2011, in writing examined the case
„On Compliance of Para 6 and Para 7 of Transitional Provisions of the Law
“On Protection of Employees in Case of Insolvency of Employer” with Article 1 and
Article 91 of the Satversme”.
The Facts
1. On 20 December 2001, the Saeima [Parliament] of the Republic of Latvia
adopted the Law “On Protection of Employees in Case of Insolvency of Employer”
(hereinafter – the Employees Protection Law). The Employees Protection Law regulates
general provisions regarding satisfaction of claims of employees in case of insolvency of
an employer and the procedure for collection and use of means of the employee claim
guarantee fund (hereinafter – Guarantee Fund).
1.1. Section 2 (1) of the Employees Protection Law provides that within the
meaning of this Law, insolvency of an employer shall be in effect from the day when a
court judgment regarding insolvency of the employer or a credit institution enters into
legal effect.
1.2. In the wording that was effective as from 1 January 2007, Section 5 (1) of the
Employees Protection Law provided:
Employee claims shall be satisfied from the resources of the employee claim
guarantee fund in the following amounts:
1) work remuneration for the last three months of employment legal relationship in
twelve months before the insolvency of the employer came into effect;