The Employment Regulation File, or ERE, documents were signed yesterday by union representatives and the insolvency administrators of the Thomas Cook company, In Destination Incoming SLU, which is based in Palma.
Under the redundancy agreement, workers will receive the minimum compensation required by law, which is 20 days pay with up to 12 monthly instalments, extendable to 27 days and 13 monthly payments if three million euros is entered into the company during the insolvency process.
675 workers at In Destination Incoming SLU are losing their jobs and the company also has staff in the Canary Islands and on the Peninsula.
Thomas Cook was Britains biggest and best known holiday company and had been trading for 178 years when it went bust in September this year.
At least 21,000 workers lost their jobs and hundreds of thousands of passengers were left stranded at airports.
The bankruptcy also spelled disaster for hotels in Majorca as hundreds of reservations for Thomas Cook customers disintegrated and many hotels were forced to close their doors earlier this year specifically because of the travel company’s demise.