The Acquired Rights Directive and Compulsory Competitive Tendering in the UK: An Economic Perspective

This paper considers neglected economic aspects of the conflict between the desire of EU Member States to extend competitive tendering in their public sectors and EC law which guarantees terms and conditions of employment for workers who are transferred to a new employer. Whilst the Acquired Rights Directive explicitly contains reference to economic considerations, the debate concerning its revision has largely neglected economic analysis. Concentrating upon UK experience, we show how differences in the interpretation of the term economic in the Directive can give rise to a clash between principles of economic and legal decision-making.