Jan Dop

partner

Jan is a specialist in employment law and corporate law

jan.dop@russell.nl
+31 20 301 55 55

Transfer of undertaking: To what employees does it apply?

Publication date 26 april 2016

Planning on a merger, acquisition or division of (part of) a business in the Netherlands or any other EU country? Then be aware of the EU law which sets out the strong position of employees in case of a transfer of undertaking (Directive 2001/23/EC). Russell Advocaten will inform you of the EU law on transfer of undertaking and the consequences thereof by a series of newsletters. This time: To what employees does it apply?

herplaatsing

Who is protected?

Only employees who have an employment contract with the transferor at the time of the transfer of undertaking can invoke the protection by transfer of undertaking. Case law shows that there are circumstances under which also employees who are formally employed by another business but, in practice, are working for the transferor, can apply for the protection (i.e. an employee who is employed by a holding but is permanently set to work by a subsidiary).

The duration (definite or indefinite) and scope (fulltime or part-time) of the employment contract is irrelevant to the applicability of the protection. An employment contract for a definite period of time will, of course, still end when the agreed date is reached. Sick employees who are not able to work at the time of the transfer can also invoke the protection.

More information

Would you like to receive more information about the EU law on transfer of undertaking and the consequences thereof? Or do you have any other questions on employment law? Please contact us:

    We process the personal data above with your permission. You can withdraw your permission at any time. For more information please see our Privacy Statement.

    Related publications

    3 reasons to establish a works council

    Many companies do not have a works council, even though they should. When is it mandatory to establish one? What are the advantages of a works council? What are the consequences if your company does not have a works council?

    Read more

    Discrimination during the application process

    Discrimination in the recruitment and hiring of new staff is not permitted. When do you, as an employer, discriminate during the application process, even unintentionally? And how can you prevent this, also if you use AI?

    Read more

    Legislative proposal for greater security for flex workers

    The government wants to improve the legal position of flex workers with a new law. What will it mean for employers and flex workers if the legislative proposal is adopted? What new rules will you need to take into account?

    Read more

    Statutory minimum hourly wage

    The statutory minimum hourly wage changes every six months. What are the new amounts as of 1 July 2025?

    Read more

    Contract termination: survival clauses

    If a contract has ended, there may still be obligations you want your contract partner to fulfil, such as warranties or confidentiality. You can regulate this through survival clauses. What should you look out for when including such clauses?

    Read more

    Is an appointment decision required to be a statutory director?

    A director under the articles of association is appointed by an appointment decision by an authorised body. What might be the consequences if this decision was not established in writing?

    Read more