COUNCILDIRECTIVE2001/23/EC
of12March2001
ontheapproximationofthelawsoftheMemberStatesrelatingtothesafeguardingofemployees' rightsintheeventoftransfersofundertakings,businessesorpartsofundertakingsorbusinesses
THECOUNCILOFTHEEUROPEANUNION,
HavingregardtotheTreatyestablishingtheEuropean Community,andinparticularArticle94thereof,
HavingregardtotheproposalfromtheCommission,
HavingregardtotheopinionoftheEuropeanParliament(1),
HavingregardtotheopinionoftheEconomicandSocial Committee(2),
Whereas:
(1) CouncilDirective77/187/EECof14February1977on theapproximationofthelawsoftheMemberStates relatingtothesafeguardingofemployees'rightsinthe eventoftransfersofundertakings,businessesorpartsof undertakingsorbusinesses(3)hasbeensubstantially amended(4).Intheinterestsofclarityandrationality,it shouldthereforebecodified.
(2) Economictrendsarebringingintheirwake,atboth nationalandCommunitylevel,changesinthestructure ofundertakings,throughtransfersofundertakings,businessesorpartsofundertakingsorbusinessestoother employersasaresultoflegaltransfersormergers.
(3) Itisnecessarytoprovidefortheprotectionof employeesintheeventofachangeofemployer,in particular,toensurethattheirrightsaresafeguarded.
(4) DifferencesstillremainintheMemberStatesasregards theextentoftheprotectionofemployeesinthisrespect andthesedifferencesshouldbereduced.
(5) TheCommunityCharteroftheFundamentalSocial RightsofWorkersadoptedon9December1989(‘Social Charter’)states,inpoints7,17and18inparticularthat: ‘Thecompletionoftheinternalmarketmustleadtoan improvementinthelivingandworkingconditionsof workersintheEuropeanCommunity.Theimprovement mustcover,wherenecessary,thedevelopmentofcertain aspectsofemploymentregulationssuchasprocedures forcollectiveredundanciesandthoseregardingbankruptcies.Information,consultationandparticipationfor workersmustbedevelopedalongappropriatelines, takingaccountofthepracticeinforceinthevarious MemberStates.Suchinformation,consultationand participationmustbeimplementedinduetime,particularlyinconnectionwithrestructuringoperationsin undertakingsorincasesofmergershavinganimpacton theemploymentofworkers’.
(1)Opiniondeliveredon25October2000(notyetpublishedinthe OfficialJournal).
(6) In1977theCounciladoptedDirective77/187/EECto promotetheharmonisationoftherelevantnationallaws ensuringthesafeguardingoftherightsofemployeesand requiringtransferorsandtransfereestoinformand consultemployees'representativesingoodtime.
(7) ThatDirectivewassubsequentlyamendedinthelightof theimpactoftheinternalmarket,thelegislativetendenciesoftheMemberStateswithregardtotherescueof undertakingsineconomicdifficulties,thecase-lawofthe CourtofJusticeoftheEuropeanCommunities,Council Directive75/129/EECof17February1975onthe approximationofthelawsoftheMemberStatesrelating tocollectiveredundancies(5)andthelegislationalready inforceinmostMemberStates.
(8) Considerationsoflegalsecurityandtransparency requiredthatthelegalconceptoftransferbeclarifiedin thelightofthecase-lawoftheCourtofJustice.Such clarificationhasnotalteredthescopeofDirective77/ 187/EECasinterpretedbytheCourtofJustice.
(9) TheSocialCharterrecognisestheimportanceofthe fightagainstallformsofdiscrimination,especiallybased onsex,colour,race,opinionandcreed.
(10) ThisDirectiveshouldbewithoutprejudicetothetime limitssetoutinAnnexIPartBwithinwhichthe MemberStatesaretocomplywithDirective77/ 187/EEC,andtheactamendingit,
HASADOPTEDTHISDIRECTIVE: CHAPTERI
Scopeanddefinitions
Article1
1.(a)ThisDirectiveshallapplytoanytransferofanundertaking,business,orpartofanundertakingorbusiness toanotheremployerasaresultofalegaltransferor merger.
(b)Subjecttosubparagraph(a)andthefollowingprovisions ofthisArticle,thereisatransferwithinthemeaningof thisDirectivewherethereisatransferofaneconomic entitywhichretainsitsidentity,meaninganorganised groupingofresourceswhichhastheobjectiveof pursuinganeconomicactivity,whetherornotthat activityiscentralorancillary.
(2)OJC367,20.12.2000,p.21. (3)OJL61,5.3.1977,p.26.(5)OJL48,22.2.1975,p.29.DirectivereplacedbyDirective98/ 59/EC(OJL225,12.8.1998,p.16).
(4)SeeAnnexI,PartA.
(c)ThisDirectiveshallapplytopublicandprivateundertakingsengagedineconomicactivitieswhetherornot theyareoperatingforgain.Anadministrativereorganisationofpublicadministrativeauthorities,orthe transferofadministrativefunctionsbetweenpublic administrativeauthorities,isnotatransferwithinthe meaningofthisDirective.
2.ThisDirectiveshallapplywhereandinsofarasthe undertaking,businessorpartoftheundertakingorbusinessto betransferredissituatedwithintheterritorialscopeofthe Treaty.
3.ThisDirectiveshallnotapplytoseagoingvessels.
Article2
1.ForthepurposesofthisDirective:
(a)‘transferor’shallmeananynaturalorlegalpersonwho,by reasonofatransferwithinthemeaningofArticle1(1), ceasestobetheemployerinrespectoftheundertaking, businessorpartoftheundertakingorbusiness;
(b)‘transferee’shallmeananynaturalorlegalpersonwho,by reasonofatransferwithinthemeaningofArticle1(1), becomestheemployerinrespectoftheundertaking,businessorpartoftheundertakingorbusiness;
(c)‘representativesofemployees’andrelatedexpressionsshall meantherepresentativesoftheemployeesprovidedforby thelawsorpracticesoftheMemberStates;
(d)‘employee’shallmeananypersonwho,intheMember Stateconcerned,isprotectedasanemployeeunder nationalemploymentlaw.
2.ThisDirectiveshallbewithoutprejudicetonationallaw asregardsthedefinitionofcontractofemploymentoremploymentrelationship.
However,MemberStatesshallnotexcludefromthescopeof thisDirectivecontractsofemploymentoremployment relationshipssolelybecause:
(a)ofthenumberofworkinghoursperformedortobe performed,
(b)theyareemploymentrelationshipsgovernedbyafixeddurationcontractofemploymentwithinthemeaningof Article1(1)ofCouncilDirective91/383/EECof25June 1991supplementingthemeasurestoencourageimprovementsinthesafetyandhealthatworkofworkerswitha fixed-durationemploymentrelationshiporatempory employmentrelationship(1),or
(c)theyaretemporaryemploymentrelationshipswithinthe meaningofArticle1(2)ofDirective91/383/EEC,andthe undertaking,businessorpartoftheundertakingorbusinesstransferredis,orispartof,thetemporaryemployment businesswhichistheemployer.
(1)OJL206,29.7.1991,p.19.
CHAPTERII
Safeguardingofemployees'rights
Article3
1.Thetransferor'srightsandobligationsarisingfroma contractofemploymentorfromanemploymentrelationship existingonthedateofatransfershall,byreasonofsuch transfer,betransferredtothetransferee.
MemberStatesmayprovidethat,afterthedateoftransfer,the transferorandthetransfereeshallbejointlyandseverallyliable inrespectofobligationswhicharosebeforethedateoftransfer fromacontractofemploymentoranemploymentrelationship existingonthedateofthetransfer.
2.MemberStatesmayadoptappropriatemeasuresto ensurethatthetransferornotifiesthetransfereeofalltherights andobligationswhichwillbetransferredtothetransferee underthisArticle,sofarasthoserightsandobligationsareor oughttohavebeenknowntothetransferoratthetimeofthe transfer.Afailurebythetransferortonotifythetransfereeof anysuchrightorobligationshallnotaffectthetransferofthat rightorobligationandtherightsofanyemployeesagainstthe transfereeand/ortransferorinrespectofthatrightorobligation.
3.Followingthetransfer,thetransfereeshallcontinueto observethetermsandconditionsagreedinanycollective agreementonthesametermsapplicabletothetransferorunder thatagreement,untilthedateofterminationorexpiryofthe collectiveagreementortheentryintoforceorapplicationof anothercollectiveagreement.
MemberStatesmaylimittheperiodforobservingsuchterms andconditionswiththeprovisothatitshallnotbelessthan oneyear.
4.(a)UnlessMemberStatesprovideotherwise,paragraphs1 and3shallnotapplyinrelationtoemployees'rightsto old-age,invalidityorsurvivors'benefitsundersupplementarycompanyorintercompanypensionschemes outsidethestatutorysocialsecurityschemesinMember States.
(b)Evenwheretheydonotprovideinaccordancewith subparagraph(a)thatparagraphs1and3applyinrelationtosuchrights,MemberStatesshalladoptthemeasuresnecessarytoprotecttheinterestsofemployeesand ofpersonsnolongeremployedinthetransferor'sbusinessatthetimeofthetransferinrespectofrights conferringonthemimmediateorprospectiveentitlementtooldagebenefits,includingsurvivors'benefits, undersupplementaryschemesreferredtoinsubparagraph(a).
Article4
1.Thetransferoftheundertaking,businessorpartofthe undertakingorbusinessshallnotinitselfconstitutegrounds fordismissalbythetransferororthetransferee.Thisprovision shallnotstandinthewayofdismissalsthatmaytakeplacefor economic,technicalororganisationalreasonsentailingchanges intheworkforce.
MemberStatesmayprovidethatthefirstsubparagraphshall notapplytocertainspecificcategoriesofemployeeswhoare notcoveredbythelawsorpracticeoftheMemberStatesin respectofprotectionagainstdismissal.
2.Ifthecontractofemploymentortheemploymentrelationshipisterminatedbecausethetransferinvolvesasubstantialchangeinworkingconditionstothedetrimentofthe employee,theemployershallberegardedashavingbeen responsibleforterminationofthecontractofemploymentor oftheemploymentrelationship.
Article5
1.UnlessMemberStatesprovideotherwise,Articles3and4 shallnotapplytoanytransferofanundertaking,businessor partofanundertakingorbusinesswherethetransferoristhe subjectofbankruptcyproceedingsoranyanalogousinsolvency proceedingswhichhavebeeninstitutedwithaviewtothe liquidationoftheassetsofthetransferorandareunderthe supervisionofacompetentpublicauthority(whichmaybean insolvencypractionerauthorisedbyacompetentpublic authority).
2.WhereArticles3and4applytoatransferduringinsolvencyproceedingswhichhavebeenopenedinrelationtoa transferor(whetherornotthoseproceedingshavebeeninstitutedwithaviewtotheliquidationoftheassetsofthetransferor)andprovidedthatsuchproceedingsareunderthesupervisionofacompetentpublicauthority(whichmaybean insolvencypractionerdeterminedbynationallaw)aMember Statemayprovidethat:
(a)notwithstandingArticle3(1),thetransferor'sdebtsarising fromanycontractsofemploymentoremploymentrelationshipsandpayablebeforethetransferorbeforethe openingoftheinsolvencyproceedingsshallnotbetransferredtothetransferee,providedthatsuchproceedings giverise,underthelawofthatMemberState,toprotection atleastequivalenttothatprovidedforinsituationscovered byCouncilDirective80/987/EECof20October1980on theapproximationofthelawsoftheMemberStates relatingtotheprotectionofemployeesintheeventofthe insolvencyoftheiremployer(1),and,oralternatively,that, (b)thetransferee,transferororpersonorpersonsexercising thetransferor'sfunctions,ontheonehand,andtherepresentativesoftheemployeesontheotherhandmayagree alterations,insofarascurrentlaworpracticepermits,to theemployees'termsandconditionsofemployment designedtosafeguardemploymentopportunitiesby ensuringthesurvivaloftheundertaking,businessorpartof theundertakingorbusiness.
3.AMemberStatemayapplyparagraph20(b)toanytransferswherethetransferorisinasituationofseriouseconomic crisis,asdefinedbynationallaw,providedthatthesituationis declaredbyacompetentpublicauthorityandopentojudicial supervision,onconditionthatsuchprovisionsalreadyexisted innationallawon17July1998.
TheCommissionshallpresentareportontheeffectsofthis provisionbefore17July2003andshallsubmitanyappropriateproposalstotheCouncil.
(1)OJL283,20.10.1980,p.23.Directiveaslastamendedbythe 1994ActofAccession.
4.MemberStatesshalltakeappropriatemeasureswitha viewtopreventingmisuseofinsolvencyproceedingsinsucha wayastodepriveemployeesoftherightsprovidedforinthis Directive.
Article6
1.Iftheundertaking,businessorpartofanundertakingor businesspreservesitsautonomy,thestatusandfunctionofthe representativesoroftherepresentationoftheemployees affectedbythetransfershallbepreservedonthesameterms andsubjecttothesameconditionsasexistedbeforethedateof thetransferbyvirtueoflaw,regulation,administrativeprovisionoragreement,providedthattheconditionsnecessaryfor theconstitutionoftheemployee'srepresentationarefulfilled.
Thefirstsubparagraphshallnotsupplyif,underthelaws, regulations,administrativeprovisionsorpracticeinthe MemberStates,orbyagreementwiththerepresentativesofthe employees,theconditionsnecessaryforthereappointmentof therepresentativesoftheemployeesorforthereconstitution oftherepresentationoftheemployeesarefulfilled.
Wherethetransferoristhesubjectofbankruptcyproceedings oranyanaloguousinsolvencyproceedingswhichhavebeen institutedwithaviewtotheliquidationoftheassetsofthe transferorandareunderthesupervisionofacompetentpublic authority(whichmaybeaninsolvencypractitionerauthorised byacompetentpublicauthority),MemberStatesmaytakethe necessarymeasurestoensurethatthetransferredemployees areproperlyrepresenteduntilthenewelectionordesignation ofrepresentativesoftheemployees.
Iftheundertaking,businessorpartofanundertakingorbusinessdoesnotpreserveitsautonomy,theMemberStatesshall takethenecessarymeasurestoensurethattheemployees transferredwhowererepresentedbeforethetransfercontinue tobeproperlyrepresentedduringtheperiodnecessaryforthe reconstitutionorreappointmentoftherepresentationof employeesinaccordancewithnationallaworpractice.
2.Ifthetermofofficeoftherepresentativesofthe employeesaffectedbythetransferexpiresasaresultofthe transfer,therepresentativesshallcontinuetoenjoytheprotectionprovidedbythelaws,regulations,administrativeprovisionsorpracticeoftheMemberStates.
CHAPTERIII
Informationandconsultation
Article7
1.Thetransferorandtransfereeshallberequiredtoinform therepresentativesoftheirrespectiveemployeesaffectedbythe transferofthefollowing:
—thedateorproposeddateofthetransfer, —thereasonsforthetransfer, —thelegal,economicandsocialimplicationsofthetransfer fortheemployees, —anymeasuresenvisagedinrelationtotheemployees.
Thetransferormustgivesuchinformationtotherepresentativesofhisemployeesingoodtime,beforethetransferis carriedout.
Thetransfereemustgivesuchinformationtotherepresentativesofhisemployeesingoodtime,andinanyeventbefore hisemployeesaredirectlyaffectedbythetransferasregards theirconditionsofworkandemployment.
2.Wherethetransferororthetransfereeenvisagesmeasures inrelationtohisemployees,heshallconsulttherepresentativesofthisemployeesingoodtimeonsuchmeasureswitha viewtoreachinganagreement.
3.MemberStateswhoselaws,regulationsoradministrative provisionsprovidethatrepresenativesoftheemployeesmay haverecoursetoanarbitrationboardtoobtainadecisionon themeasurestobetakeninrelationtoemployeesmaylimit theobligationslaiddowninparagraphs1and2tocaseswhere thetransfercarriedoutgivesrisetoachangeinthebusiness likelytoentailseriousdisadvantagesforaconsiderablenumber oftheemployees.
Theinformationandconsultationsshallcoveratleastthe measuresenvisagedinrelationtotheemployees.
Theinformationmustbeprovidedandconsultationstakeplace ingoodtimebeforethechangeinthebusinessasreferredtoin thefirstsubparagraphiseffected.
4.TheobligationslaiddowninthisArticleshallapply irrespectiveofwhetherthedecisionresultinginthetransferis takenbytheemployeroranundertakingcontrollingthe employer.
InconsideringallegedbreachesoftheinformationandconsultationrequirementslaiddownbythisDirective,theargument thatsuchabreachoccurredbecausetheinformationwasnot providedbyanundertakingcontrollingtheemployershallnot beacceptedasanexcuse.
5.MemberStatesmaylimittheobligationslaiddownin paragraphs1,2and3toundertakingsorbusinesseswhich,in termsofthenumberofemployees,meettheconditionsforthe electionornominationofacollegiatebodyrepresentingthe employees.
6.MemberStatesshallprovidethat,wherethereareno representativesoftheemployeesinanundertakingorbusiness throughnofaultoftheirown,theemployeesconcernedmust beinformedinadvanceof:
—thedateorproposeddateofthetransfer, —thereasonforthetransfer, —thelegal,economicandsocialimplicationsofthetransfer fortheemployees,
—anymeasuresenvisagedinrelationtotheemployees.
CHAPTERIV Finalprovisions
Article8
ThisDirectiveshallnotaffecttherightofMemberStatesto applyorintroducelaws,regulationsoradministrativeprovisionswhicharemorefavourabletoemployeesortopromote orpermitcollectiveagreementsoragreementsbetweensocial partnersmorefavourabletoemployees.
Article9
MemberStatesshallintroduceintotheirnationallegalsystems suchmeasuresasarenecessarytoenableallemployeesand representativesofemployeeswhoconsiderthemselves wrongedbyfailuretocomplywiththeobligationsarisingfrom thisDirectivetopursuetheirclaimsbyjudicialprocessafter possiblerecoursetoothercompetentauthorities.
Article10
TheCommissionshallsubmittotheCouncilananalysisofthe effectoftheprovisionsofthisDirectivebefore17July2006.It shallproposeanyamendmentwhichmayseemnecessary.
Article11
MemberStatesshallcommunicatetotheCommissionthetexts ofthelaws,regulationsandadministrativeprovisionswhich theyadoptinthefieldcoveredbythisDirective.
Article12
Directive77/187/EEC,asamendedbytheDirectivereferredto inAnnexI,PartA,isrepealed,withoutprejudicetotheobligationsoftheMemberStatesconcerningthetimelimitsfor implementationsetoutinAnnexI,PartB.
ReferencestotherepealedDirectiveshallbeconstruedasreferencestothisDirectiveandshallbereadinaccordancewiththe correlationtableinAnnexII.
Article13
ThisDirectiveshallenterintoforceonthe20thdayfollowing itspublicationinthe OfficialJournaloftheEuropeanCommunities
Article14
ThisDirectiveisaddressedtotheMemberStates.
DoneatBrussels,12March2001.
FortheCouncil ThePresident B.RINGHOLM
ANNEXI
PARTA
RepealedDirectiveanditsamendingDirective (referredtoinArticle12)
CouncilDirective77/187/EEC(OJL61,5.3.1977,p.26)
CouncilDirective98/50/EC(OJL201,17.7.1998,p.88)
PARTB
Deadlinesfortranspositionintonationallaw (referredtoinArticle12)
Directive Deadlinefortransposition
77/187/EEC16February1979 98/50/EC17July2001
CORRELATIONTABLE
Direrective77/187/EEC
Article1Article1
Article2Article2
Article3Article3
Article4Article4
Article4aArticle5
Article5Article6
Article6Article7
Article7Article8
Article7aArticle9
Article7bArticle10
Article8Article11