Employment and pensions: Employment rights after liquidation - ECJ decision

United Kingdom
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).