The CJEU has ruled in the case of Albron Catering BV v FNV Bondgenoten, John Roest* that employees of a firm who are transferred to another company must retain their rights even if the company with whom they had the employment contract does not transfer.

The ruling provides clarity on a technical point which had up until now remained somewhat ambiguous. It clarifies the purposive intention of the Acquired Rights Directive i.e. to protect employees employed by the seller of a business or who are otherwise assigned to a business or service. The case also demonstrates that the CJEU is prepared, in certain circumstances, to pierce the corporate veil and buyers of a group business (whose staff are employed by another group company) should be alerted to this potential TUPE risk.