Keywords
Summary

Keywords

++++

1. Social policy - Approximation of laws - Transfers of undertakings - Maintenance of employees' rights - Directive 77/187 - Automatic transfer of all contracts of employment or employment relationships to the transferee by the mere fact of the transfer

(Council Directive 77/187, Art. 3(1))

2. Social policy - Approximation of laws - Transfers of undertakings - Maintenance of employees' rights - Directive 77/187 - Scope - Transfer of an undertaking made as part of a creditors' arrangement procedure having liquidation as its purpose - Not included - Transfer intended to allow an undertaking in difficulties to continue trading - Included

(Council Directive 77/187, Art. 1(1))

Summary

1. Article 3(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 all contracts of employment or employment relationships existing on the date of the transfer of an undertaking between the transferor and the workers employed in the undertaking transferred are automatically transferred to the transferee by the mere fact of the transfer. That transfer is binding on both the transferor and the transferee and on the employees' representatives, who may not agree different arrangements in an agreement with the transferor or the transferee and on the employees themselves, save that the employees may freely decide not to continue the employment relationship with the new employer after the transfer.

2. Article 1(1) of Council Directive 77/187 does not apply to transfers of undertakings made as part of a creditors' arrangement procedure of the kind provided for in the Italian legislation on compulsory administrative liquidation to which the Law of 3 April 1979 on special administration for large undertakings in critical difficulties refers. However, that provision of that directive does apply when, in accordance with a body of legislation such as that governing special administration for large undertakings in critical difficulties, it has been decided that the undertaking is to continue trading for as long as that decision remains in force.