The amendment of the Acquired Rights Directive

Following the agreement at the Brussels Summit amongst the EU Member States to amend the Acquired Rights Directive (ARD) the EU Commission in September 1994 presented its proposals to amend the existing Directive. This chapter seeks to assess the effects of the final amended Directive, as well as the views of the EU Member States governments towards a revised Directive and the impact which the amended ARD will have on the public sector. Up until now the Directive has been silent on the position as regards business transfers caused by insolvency, but the European Court of Justice (ECJ) has twice ruled that the ARD does not apply to transfers in the context of liquidation proceedings. The amended Directive is much clearer, especially as regards the definition of a transfer but it will still leave questions as to what constitutes an 'organised grouping of resources' in both capital and labour intensive industries for the national courts.