Transfers between subsidiaries

The European Court of Justice has ruled that transfers of work between companies with the same overall owner come within the definition of the Acquired Rights Directive, and in the UK under the Transfer of Undertakings Regulations. Employees affected by intra-company reorganisations therefore have the right to maintain their terms and conditions. This means that not only are employment rights protected but also that companies have to consult with union or employee representatives in advance of any such reorganisation. (Allen v Amalgamated Construction Case No. C-234/98)