28. 10. 80 Official Journal of the European Communities No L 283/23 COUNCIL DIRECTIVE of 20 October 1980 on the approximation of the laws of the Member States relating to the protec- tion of employees in the event of the insolvency of their employer (80/987/EEC) THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Article 100 thereof, Having regard to the proposal from the Commis- sion (1), Having regard to the opinion of the European Parlia- ment (2), Having regard to the opinion of the Economic and Social Committee (%), Whereas it is necessary to provide for the protection of employees in the event of the insolvency of their employer, in particular in order to guarantee payment of their outstanding claims, while taking account of the need for balanced economic and social develop- ment in the Community ; Whereas differences still remain between the Member States as regards the extent of the protection of employees in this respect; whereas efforts should be directed towards reducing these differences, which can have a direct effect on the functioning of the common market ; Whereas the approximation of laws in this field should, therefore, be promoted while the improve- ment within the meaning of Article 117 of the Treaty is maintained ; Whereas as a result of the geographical situation and the present job structures in that area, the labour market in Greenland is fundamentally different from that of the other areas of the Community; Whereas to the extent that the Hellenic Republic is to become a member of the European Economic Community on 1 January 1981 in accordance with the Act concerning the Conditions of Accession of the Hellenic Republic and the Adjustments to the Treaties, it is appropriate to stipulate in the Annex to the Directive under the heading ‘Greece’, those cate- gories of employees whose claims may be excluded in accordance with Article 1 (2) of the Directive, (1) OJ No C 135, 9. 6. 1978, p. 2. (2) O] No C 39, 12. 2. 1979, p. 26. (3) O] No C 105, 26. 4. 1979, p. 15. HAS ADOPTED THIS DIRECTIVE : SECTION 1 Scope and definitions Article 1 1. This Directive shall apply to employees’ claims arising from contracts of employment or employment relationships and existing against employers who are in a state of insolvency within the meaning of Article 2 (1). 2. Member States may, by way of exception, exclude claims by certain categories of employee from the scope of this Directive, by virtue of the special nature of the employee’s contract of employment or employment relationship or of the existence of other forms of guarantee offering the employee protection equivalent to that resulting from this Directive. The categories of employee referred to in the first subparagraph are listed in the Annex. 3. This Directive shall not apply to Greenland. This exception shall be re-examined in the event of any development in the job structures in that region. Article 2 1. For the purposes of this Directive, an employer shall be deemed to be in a state of insolvency : (a) where a request has been made for the opening of proceedings involving the employer’s assets, as provided for under the laws, regulations and ad- ministrative provisions of the Member State concerned, to satisfy collectively the claims of cred- itors and which make it possible to take into consideration the claims referred to in Article 1 (1), and (b) where the authority which is competent pursuant to the said laws, regulations and administrative provisions has : — either decided to open the proceedings, — or established that the employer’s undertaking or business has been definitively closed down and that the available assets are insufficient to warrant the opening of the proceedings.