I was dismissed right after the company was bought. Is the transfer itself a valid reason?

What the Law Says

EU law protects employees when a business changes hands. The key rule is that employment rights and obligations transfer automatically — and dismissal solely because of the transfer is prohibited.

The EU Acquired Rights Directive (2001/23/EC) ensures that when a business, or part of one, is transferred from one employer to another, employees’ rights and ongoing contracts transfer automatically to the new owner. This means the new employer steps into the shoes of the old one — including all rights, duties, and liabilities.

Crucially, the Directive prohibits dismissal 'solely or principally' because of the transfer. Such dismissals are void unless they are for an 'economic, technical or organisational reason entailing changes in the workforce' — known as an ETO reason. Examples include genuine redundancy due to restructuring, not simply because ownership changed.

Member States must implement this Directive into national law. So while enforcement details vary across EU countries (e.g., notice periods, remedies), the core protection applies uniformly.

Statutory Text

The transfer of the undertaking, business or part of the undertaking or business shall not in itself entail the termination of the contract of employment or the employment relationship.

— Council Directive 2001/23/EC, Art. 3(1)

Statutory Text

Dismissals effected by the transferor or transferee for reasons connected with the transfer are prohibited.

— Council Directive 2001/23/EC, Art. 4(1)

Sources