The transfer of administrative functions from one local authority to a new larger authority formed by a number of municipalities is not covered by the Acquired Rights Directive, the European Court of Justice has concluded in a surprise decision.
Employers who think temporary staff have few employment rights may find they do have the same rights as permanent staff to things like proper notice and full unfair dismissal rights.
There are a large number of cases pending before the European Court of Justice from all over Europe.
In Wilson and Others v St Helens Borough Council [1996] IRLR 320 the Employment Appeal Tribunal decided that if contractual terms were changed because of a transfer of an undertaking, the original contract of employment remained in force.
The Court of Appeal dealt a severe blow to former Swan Hunter shipyard workers seeking compensation - a protective award - for a failure to properly consult on redundancies announced after the company went into receivership.