The rights of workers in the event of transfer of undertakings

Abstract

Employment and the protection of existing employees has been considered as a very important issue in the European Union. The Amsterdam Treaty amends the objectives of the Union, as laid down in Article B of the Maastricht Treaty, in such a way that this now reads as follows: "The Union shall set itself the following objectives: to promote economic and social progress which is balanced and sustainable and a high level of employment, in particular through the creation of an area without internal frontiers, through the strengthening of economic and social cohesion and through the establishment of economic and monetary union, ultimately including a single currency in accordance with the provisions of this Treaty." In order to promote a high level of employment, care must be taken to protect the existing places of work, apart from seeking to create more jobs, such that the unemployment gap is steadily reduced, and not simply stabilised because the new jobs are taken up by those who were previously employed elsewhere, but lost their jobs due to some changes in the undertaking employing them. This is not to say that it is not a positive fact that those workers who become unemployed manage to find other employment. However by applying just this side of the equation, one would only be keeping the unemployment rate at a steady balance, and not reducing it. In order for a reduction to occur, new jobs must be created, without the existing ones being lost. Thus, the protection of workers, and their rights vis-a-vis their current and prospective employers in the event of the transfer of an undertaking, are important issues in the general view of employment problems and the solutions thereto. [excerpt]