The Court of Justice of the European Union and transfers of undertakings: implications for collective labour rights

The Acquired Rights Directive has been the subject of much litigation before national courts and the Court of Justice of the European Union since it was adopted in 1977. Its underlying purpose has been to safeguard employees’ rights in cases of transfers of undertakings. Th e CJEU’s decision in Case C-426/11 Alemo-Herron v Parkwood Leisure Ltd, Judgment of 18 July 2013, however, marks a signifi cant shift in the CJEU’s approach to the Directive from one which seeks to protect employment rights in the case of a transfer to one which requires a balance to be struck between the interests of the transferee and the employee. In doing so, the judgment has the potential to have serious ramifi cations for British and European labour law.