Transfer of undertakings: Pension rights not protected on transfer

In Adams and others v Lancashire County Council and BET Catering Services Ltd [1997] IRLR 436, the Court of Appeal upholds the High Court's decision that the EC Business Transfers Directive excludes all pension rights - past, present and future - from transferring with employees on the transfer of an undertaking and, accordingly, the exclusion of pension rights from the United Kingdom's Transfer of Undertakings Regulations is consistent with Community law. EC member states are only under a duty to provide protection in respect of accrued pension rights that have crystallised at the time of transfer, and not future pension rights in respect of periods of employment after a transfer.