Planning on a merger, acquisition or division of (part of) a business in the Netherlands or any other EU country? Then be aware of the EU law which sets out the strong position of employees in case of a transfer of undertaking (Directive 2001/23/EC). Russell Advocaten will inform you of the EU law on transfer of undertaking and the consequences thereof by a series of newsletters. This time: To what employees does it apply?
Only employees who have an employment contract with the transferor at the time of the transfer of undertaking can invoke the protection by transfer of undertaking. Case law shows that there are circumstances under which also employees who are formally employed by another business but, in practice, are working for the transferor, can apply for the protection (i.e. an employee who is employed by a holding but is permanently set to work by a subsidiary).
The duration (definite or indefinite) and scope (fulltime or part-time) of the employment contract is irrelevant to the applicability of the protection. An employment contract for a definite period of time will, of course, still end when the agreed date is reached. Sick employees who are not able to work at the time of the transfer can also invoke the protection.
Would you like to receive more information about the EU law on transfer of undertaking and the consequences thereof? Or do you have any other questions on employment law? Please contact us:
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