The scope of application of the acquired rights directive

Abstract

Council Directive 2001/23/EC of 12 March 2001 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 undertakings or businesses, which is better known as the Acquired Rights Directive, protects employees in cases of legal transfers or mergers of undertakings. By virtue of the Directive, the transferee assumes towards the employees of the transferor all the rights and obligations of the transferor. Employees are therefore protected, subject to certain exceptions, from changes being effected to their employment contract and from dismissals as a result of the transfer. Without the protection offered by the Directive, employees could face termination of their employment contract in some Member States, such as in the United Kingdom, or else lose continuity of their previous employment with the transferor under the transferee. This thesis will examine the forms of transfers which are caught by the Directive as well as the employees who are entitled to the protection offered by it. In Chapter 1, the definition of a 'legal transfer or merger' which fall under the scope of the Directive will be examined, as well as the criteria which must be satisfied in order for a particular transaction to be covered by the Directive. In the second chapter, the issue of outsourcing will be analysed, with particular reference to the position under the UK's Transfer of Undertakings (Protection of Employment) Regulations 2006. The third chapter will deal with whether take-overs by acquisition of share capital are covered by the Directive while the fourth chapter will examine the issue of which employees are entitled to be transferred.