This document is an excerpt from the EUR-Lex website
Document 61996CJ0127
Summary of the Judgment
Summary of the Judgment
Social policy - Approximation of laws - Transfers of undertakings - Safeguarding of employees' rights - Directive 77/187 - Scope - Situation where an undertaking which has entered into a cleaning contract with another undertaking terminates that contract in order to carry out the cleaning of its premises itself - Covered - Conditions
(Council Directive 77/187, Art. 1(1))
Article 1(1) of Directive 77/187 on the approximation of the laws of the Member States relating to the safeguarding of employees' rights in the event of transfers of undertakings, businesses or parts of businesses is to be interpreted as meaning that the Directive applies to a situation in which an undertaking which used to entrust the cleaning of its premises to another undertaking decides to terminate its contract with that other undertaking and in future to carry out the cleaning work itself, provided that the operation is accompanied by the transfer of an economic entity between the two undertakings. The term `economic entity' refers to an organised grouping of persons and assets enabling an economic activity which pursues a specific objective to be exercised. The mere fact that the maintenance work carried out first by the cleaning firm and then by the undertaking owning the premises is similar does not justify the conclusion that a transfer of such an entity has occurred.