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Transfer of undertakings: Refusal to take on employees does not preclude transfer

This report relates to 1 case(s)

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    ECM (Vehicle Delivery Service) Ltd v Cox and others [1999] IRLR 559 CA (0 other reports)

An employment tribunal was entitled to conclude that, even though a transferee contractor declined to take on any of the transferor contractor's employees, the identity of the economic entity operated by the transferor was retained in the hands of the transferee, holds the Court of Appeal in ECM (Vehicle Delivery Services) Ltd v Cox and others 22.7.99 Court of Appeal. The tribunal had applied the correct test for determining whether there was a transfer of an undertaking, as laid down by the European Court of Justice ("the ECJ") in Spijkers, and had regard to all the factors which were held in that case to be relevant to that question. There is, says the Court of Appeal, nothing in the ECJ's later ruling in Süzen that casts doubt on the correctness of the approach developed in Spijkers and related earlier cases.