Judgment — ECLI:EU:C:1998:532
Date: 1998-11-12
Language of the case: French
Court formation: Second Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: 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: Belgium

Summary of the Judgment 
1. Social policy — Approximation of Laws — Transfers of undertakings — Safeguarding of 
employees' rights — Directive 77/187 — Scope — Whole or partial transfer of the assets of an 
undertaking in voluntary liquidation — Included 
(Council Directive 77/187, Art. 1(1)) 
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SUMMARY — CASE C-399/96 
2. Social policy — Approximation of laws — Transfers of undertakings — Safeguarding of 
employees' rights — Directive 77/187 — Objection by a worker to the transfer of his contract 
to the transferee — Whether permissible — Substantial change in working conditions by reason 
of the transfer — Termination attributable to the employer 
(Council Directive 77/187, Arts 3(1), and 4(2)) 
1. Article 1(1) of Directive 77/187 on the 
approximation of the laws of the Member 
States relating to the safeguarding of 
employees' rights in the event of transfers 
of undertakings, businesses or parts of 
businesses, must be interpreted as meaning 
that the directive applies where a company­
in voluntary liquidation transfers all or 
part of its assets to another company from 
which the worker then takes his orders 
which the company in liquidation states 
are to be carried out. 
2. Article 3(1) of Directive 77/187 on the 
approximation of the laws of the Member 
States relating to the safeguarding of 
employees' rights in the event of transfers 
of undertakings, businesses or parts of 
businesses, does not preclude a worker 
employed by the transferor at the date of 
the transfer of an undertaking from 
objecting to the transfer of his contract of 
employment or employment relationship 
to the transferee, provided he decides to 
do so of his own accord. It is for the 
national court to determine whether the 
contract of employment proposed by the 
transferee involves a substantial change in 
working conditions to the detriment of 
the worker. If it does, Article 4(2) of the 
directive requires Member States to pro­
vide that the employer is to be considered 
responsible for the termination. 
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