The ECJ has given a further judgment on Directive 77/187/EEC on the
safeguarding of employees' rights in the event of the transfer of a
business. The Directive generally does not apply to a transfer by a
business in the course of insolvency proceedings.
The ECJ found that the Directive applied in the
event of the transfer of an undertaking which is being wound up by
the court if the undertaking continues to trade, and that, in
deciding whether the Directive applies the purpose of the procedure
will be taken into account as well as the form (Case C-319/94 Jules
Dethier Equipement SA v Jules Dassy ECJ 12.03.98).