Keywords
Summary

Keywords

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1. Social policy ° Approximation of laws ° Transfers of undertakings ° Safeguarding of employees' rights ° Directive 77/187/EEC ° Scope ° Legal transfer ° Definition ° Transfer of activities between two bodies subsidized by public authorities following a change in the grant of subsidies ° Covered

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

2. Social policy ° Approximation of laws ° Transfers of undertakings ° Safeguarding of employees' rights ° Directive 77/187 ° Transfer ° Definition

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

Summary

1. Article 1(1) of Council 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 expression "legal transfer" covers a situation in which a public authority decides to terminate the subsidy paid to one legal person, as a result of which the activities of that legal person are fully and definitively terminated, and to transfer it to another legal person with a similar aim.

2. The expression "transfer of an undertaking, business or part of a business" contained in Article 1(1) of Directive 77/187 refers to the case in which the entity in question has retained its identity. In order to ascertain whether or not there has been such a transfer, it is necessary to determine, having regard to all the factual circumstances characterizing the operation in question, whether the functions performed are in fact carried out or resumed by the new legal person with the same or similar activities, it being understood that activities of a special nature which constitute independent functions may, where appropriate, be equated with a business or part of a business within the meaning of the directive.