|"Independent Redundancy Help" - Established since 2000
Transfer of an undertaking
In simple terms, this is where an existing business (an undertaking) or part of that business is transferred to a new employer. The affected employees become employees of the new employer under their existing contracts. The aim being a seamless change of employer.
Employees representatives or a recognised trade union must be informed when and why the transfer is to happen and consulted fully on any proposed action that may impact on the employees concerned.
The protection of employees existing contracts during a transfer depends
on the type of transfer and does not apply to all transfers. It would
apply where one company bought the assets of another and then continued
to run the business.
Under the Transfer of Undertakings Regulations, the new employer must
take over the contracts of the entire workforce as it stands prior to
the transfer. If dismissal becomes unavoidable, then the usual redundancy
procedures should take effect.
If as a result of a transfer, an employee feels that his or her terms
and conditions of employment have changed for the worse, he or she has
the right to apply to an employment tribunal for unfair dismissal.
The transfer of an undertaking does not affect an employee's period of continuous employment (used for calculation of entitlements, for example, redundancy). The start of the continuous employment period is taken from the date on which the employee commenced work with the old employer.
The Department of Trade and Industry publish a booklet PL700, written Statement of Employment Particulars.
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