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CJEU rules there was no transfer of undertakings after long gap between old and new contracts



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CJEU rules in Colino Siguenza C-472/16 there was no transfer of undertaking for the purposes of the Acquired Rights Directive in circumstances where a contract to operate a Spanish music school terminated for non-performance and the service was resumed by another contractor after a gap of five months -

‘… it appears that the dismissal of the employees was made for ‘economic, technical or organisational reasons entailing changes in the workforce’, within the meaning of [Article 4(1) of Directive 2001/23], provided that the circumstances which gave rise to the dismissal of all the employees and the delayed appointment of a new service provider are not a deliberate measure intended to deprive those employees of the rights conferred on them by Directive 2001/23, which it will be for the referring court to ascertain.’