Business transfers, employers’ strategies and the impact of recent case law

Under the European Union's 1977 Acquired Rights Directive, workers transferred to another employer can expect the majority of their original terms and conditions of employment to be protected and changes made without consultation can constitute constructive unfair dismissal. Confusion over the application of the directive greatly affected the introduction of compulsory competitive tendering to the provision of local authority services in the UK. Many of the issues remain unresolved and will cause problems as compulsory competitive tendering is replaced by the duty on authorities to “achieve best value”. This article seeks to clarify the position for employers by reviewing the most recent case law from both British and European courts.