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Transfer of undertakings: Failure of new contractor to take over workers in asset-intensive entity cannot preclude transfer

This report relates to 1 case(s)

In Abler and others v Sodexho Case C-340/01, 20.11.03, the ECJ holds that article 1 of Directive 77/187 (the "Business Transfers Directive") must be interpreted as applying to the situation where a second supplier of catering services, replacing the first, takes over the provision of catering services to a captive market and uses the same premises and equipment used by the first provider, regardless of whether or not the second supplier agrees to take on the employees of the first. This is true irrespective of who owns the key assets for the performance of the function: there does not need to be a change in ownership of those assets from one supplier to the other, but merely their continued use by the second supplier.