Court of Justice (Fourth Chamber) 27 November 2008, C-396/07 (Mirja Juuri v Fazer Amica Oy.)

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The core legal dispute in Case C-396/07 revolves around the interpretation of Article 4(2) of Directive 2001/23, specifically whether a Member State must guarantee financial compensation to an employee who terminates their contract due to substantial changes in working conditions after a transfer of undertaking, even when the transferee employer has complied with applicable collective agreements. The Court ruled that Member States are not required to provide such compensation, but the transferee employer must still fulfill obligations related to termination under national law, including salary and benefits during the notice period. Additionally, the Court clarified that the transferee's obligation to observe collective agreements does not extend beyond their expiry date, impacting the employee's rights post-transfer.AI