• TUPE: ECJ Confirms Service Company Employees Transfer Employment on Business Transfers
  • October 26, 2010 | Author: Pulina Whitaker
  • Law Firm: King & Spalding International LLP - London Office
  • The European Court of Justice (the ECJ), in Albron Catering BV v. FNV Bondgenoten and Roest, has confirmed on 21 October 2010 that employees employed by a service company who are assigned to a business will automatically transfer their employment to the acquirer of the business even though they are not employed by the “transferor” of the business. The decision confirms the purposive interpretation of the Acquired Rights Directive, implemented in the UK by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), and the fact that the ECJ is prepared to pierce the corporate veil to protect employees.