Judgment — ECLI:EU:C:2001:59
Date: 2001-01-25
Language of the case: Finnish
Court formation: Sixth Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Approximation of laws;Social Policy
Concepts: Employment protection and protection of employees in the event of the insolvency of their employer
Procedure: Reference for a preliminary ruling
Origin: Finland

Summary of the Judgment 
1. Social policy — Approximation of laws — Transfers of undertakings — Safeguard­
ing of employees' rights — Directive 77/187 — Scope — Taking over by an under­
taking of activities operated by another undertaking following a procedure for the 
award of a public service contract under Directive 92/50 — Included 
(Council Directive 77/187, Art. 1(1)) 
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SUMMARY — CASE C-172/99 
2. Social policy — Approximation of laws — Transfers of undertakings — Safeguard­
ing of employees' rights — Directive 77/187 — Scope — Transfer — Definition — 
No direct contractual link between the two undertakings — Included — Taking over 
by an undertaking of activities operated by another undertaking with no transfer of 
significant tangible assets between the two undertakings — Excluded 
(Council Directive 77/187, Art. 1(1» 
1. The taking over by an undertaking of 
non-maritime public transport activ­
ities — such as the operation of sched­
uled local bus routes — previously 
operated by another undertaking, fol­
lowing a procedure for the award of a 
public service contract under Directive 
92/50 relating to the coordination of 
procedures for the award of public 
service contracts, may fall within the 
material scope of Directive 77/187 on 
the approximation of the laws of the 
Member States relating to the safe­
guarding of employees' rights in the 
event of transfers of undertakings, 
businesses or parts of businesses, as 
set out in Article 1(1) of that directive. 
(see para. 25, and operative part 1) 
2. Article 1(1) of Directive 77/187 on the 
approximation of the laws of the 
Member States relating to the safe­
guarding of employees' rights in the 
event of transfers of undertakings, 
businesses or parts of businesses must 
be interpreted as meaning that that 
directive may apply where there is no 
direct contractual link between two 
undertakings which are successively 
awarded, following procedures for the 
award of public service contracts con­
ducted in accordance with Directive 
92/50 relating to the coordination of 
procedures for the award of public 
service contracts, a non-maritime pub­
lic transport service — such as the 
operation of scheduled local bus 
routes — by a legal person governed 
by public law. However, in such a 
situation, Directive 77/187 does not 
apply where there is no transfer of 
significant tangible assets between the 
two undertakings. 
(see para. 44, and operative part 2) 
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