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What happens to employment on a transfer of undertaking?

The rights and obligations in the employment pass to the transferee, and the transfer itself is not a ground for dismissal.

Show the provisionShow case law

What the source says

  • Article 3 of Directive 2001/23/EC: the transferor's rights and obligations pass to the transferee.
  • Article 4: the transfer itself is not a ground for dismissal.
  • Section 11 of the Co-Determination Act: negotiation before a major change to the business is decided.

Source rows

For the employer · How the employer puts the question

Map which employments transfer, negotiate in time and keep the information to workers' representatives documented.

For the employee · How the employee puts the question

Terms transfer with the undertaking, and a dismissal grounded solely on the transfer has no support in the directive.

Leading rulings

  • C-341/05 Laval
    Court of Justice of the European Union · 2007-12-18

    Collective action for terms beyond the posting rules is assessed against the freedom to provide services.

    Official source

Next step

Read the transfer directive and the consultation duty together, the order between them decides the process risk.

All questions

The rows reproduce what the source says. They are not legal advice, and applying them to a specific case is the reader's or their counsel's decision.

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