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Classification of a contract concluded between a company and its director – in light of the CJEU case-law

On April 11, 2019, the Court of Justice of the European Union decided, in Case C-603/17, Peter Bosworth and Colin Hurley v. Arcadia Petroleum Limited and Others, having as object a request for a preliminary ruling concerning the interpretation of the provisions of Section 5 of Title II (Articles 18 to 21) of the Convention on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (hereinafter the “Lugano II Convention’). 

The ruling establishes that a contract between a company and its director cannot be qualified as ‘individual contract of employment’ when the respective individual is able to determine or does determine the terms of that contract and has control and autonomy over the day-to-day operation of that company’s business and the performance of his own duties. 

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