Abstract
This article examines the challenge to the Governments policy of market testing represented by the European Union's Acquired Rights Directive. The aim of the Directive, expressed in UK legislation through the Transfer of Undertakings (Protection of Employment) Regulations 1981, is to safeguard jobs, terms and union recognition under a new employer. The authors examine the effect of market testing on jobs and employment conditions and the significance of the protection afforded by the European Union.