Greek law limiting mass layoffs overturned by EU court

A Greek law forcing employers to seek government approval for mass layoffs is too vague and violates European Union laws, the EU's top court ruled on Wednesday, potentially complicating Athens's stance in talks with international lenders.

The case was brought to the European Court of Justice after Greek cement maker AGET Iraklis, whose main shareholder is LafargeHolcim, was prevented in 2013 from making collective redundancies by the then-government because of the economic crisis and the high levels of unemployment in the country.

The court ruled that the Greek law goes against EU rules on companies' freedom to set up businesses in EU states.

"The Greek legislation is liable to constitute a serious obstacle to the exercise of freedom of establishment in Greece," a note from the court said.

The judges recognized the principle that a government is entitled to...