OPEC’s exemption from Austrian labor courts is unconstitutional. The Constitutional Court (VfGH) examined the state treaty with the Organization of the Petroleum Exporting Countries, which is headquartered in Vienna, and found it partly unconstitutional, the Supreme Court said Thursday. The investigation was launched after a former employee who had been fired called the Constitutional Court. According to the VfGH, OPEC now wants to create its own legal protection guarantees.
As an international organisation, the OPEC oil cartel enjoys immunity in Austria. It cannot therefore be sued in an Austrian court, not even in employment law cases. And a former employee who was fired by OPEC has been fighting that since the fall of 2019.
State treaty found unconstitutional for the first time
The Constitutional Court has now for the first time found a state treaty – in part – unconstitutional. Accordingly, two provisions in the Seat Agreement between Austria and OPEC violate the fundamental right of access to a court under Article 6(1) of the European Convention on Human Rights (ECHR).
Ex-employee charged with overdue wages
The ex-OPEC employee had sued the organization after the termination of his employment in the Vienna Labor and Social Court (ASG) for additional salary payments. The ASG dismissed the lawsuit because, according to Article 9 of the Austria headquarters agreement, OPEC was “free from any jurisdiction” and had not waived its immunity. The layoffs turned to the Constitutional Court — with a reason against the headquarters agreement, according to which it is unconstitutional to exempt OPEC from domestic jurisdiction without granting alternative legal protections.
The VfGH therefore agreed with the applicant. It was initially seen as a legitimate aim to grant immunity to an international organization in the Headquarters Agreement to enable the organization to function properly, free from unilateral interference by the home state i.e. Austria.
Exception allowed only with alternative legal protection
However, whether it is legitimate to exempt an international labor dispute organization from state jurisdiction essentially depends on the existence of adequate alternative legal protections. According to the Constitutional Court, the European Court of Human Rights (ECtHR) has also determined this in its case law on international organizations comparable to OPEC.
OPEC now wants to create guarantees
OPEC itself has also committed to create appropriate legal protection guarantees for employment law disputes. However, as long as the headquarters agreement cannot guarantee the existence of such a mechanism, according to the Constitutional Court it cannot be assumed that the Republic of Austria proportionally restricts access to justice in labor disputes under Article 9 of the headquarters agreement. This provision and the related Articles 5(1) and (2) were therefore found to be unconstitutional.
OPEC’s immunity will remain unchanged until the end of September 30, 2024, with the exception of the applicant’s labor court proceedings (which are pending). If no new regulation in Austrian law and OPEC statutes is made by the end of this period, legal action could be taken against OPEC in Austria, the Constitutional Court has announced.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
