Supreme Court: No Employment, No Coverage By LG

The Supreme Court has established that a pilot who had worked for an airline through employment with another company could not have his claim for unpaid salary covered by the Employees' Guarantee Fund (LG) when the airline went into bankruptcy.

When a company goes into bankruptcy, the company's employees are entitled to have their claim for unpaid salary covered by LG. However, it is a requirement that the claim for salary has arisen as part of work for the bankrupt company. In this case, the Supreme Court had to decide whether a pilot who carried out flights for a bankrupt airline through another company could have his claim for unpaid salary covered by LG.

The pilot had originally applied for employment with the airline and was invited for an interview, but was subsequently offered employment with Flight Crew Solutions (FCS), which hires out employees to airlines. The pilot did not perform work for other airlines.