The Court of Justice as a policy actor: the case of the Acquired Rights Directive

Abstract

In 1977, the Council of the European Community unanimously adopted Directive 77/187/EEC on the approximation of laws of the member states relating to the safeguarding of employees’ rights in the event of transfers of undertakings, businesses, or parts of businesses. The first half of the 1970s had witnessed an ever increasing incidence of business restructuring throughout the territory of the Community. Concern over the possible impact of such structural changes on affected employees prompted the introduction of the Acquired Rights Directive, which, according to its preamble, had the primary purpose of providing ‘for the protection of employees in the event of a change of employer, in particular to ensure that their rights are safeguarded’. In the event that a transfer of an undertaking results in a change of employer, the directive provides for the automatic transfer of the employment relationship from the old employer (the transferor) to the new employer (the transferee).