The Acquired Rights Directive is the European framework that protects employees on the transfer of an undertaking. Employees assigned to the transferring business move automatically to the new employer, keeping their contracts, service and accrued rights.
Common principles, national implementations
Each member state implements the directive in its own law, so the detail differs: what counts as a transfer, the scope of information and consultation obligations, the extent to which terms can later be varied, and the consequences of failure all vary. The UK's TUPE regulations are one implementation, retained after departure from the EU.
- Dismissal by reason of the transfer is generally prohibited
- Transferor and transferee both carry information and consultation duties
- Liabilities relating to transferring employees pass to the new employer
- Employees can usually object to transferring, generally ending their employment
Why it matters when hiring internationally
The practical relevance for international employers is the same as with TUPE: moving employees between service providers, or from a provider onto a newly established local entity, may itself be a transfer. Where it is, terms and service carry across and cannot simply be renegotiated as part of the move. Because implementation is national, the answer has to be checked per country rather than assumed from one jurisdiction's rules.