Transfer of Undertaking & Employee Rights on Business Transfers
When the ownership of an undertaking, business or part thereof changes, the employees of the undertaking are automatically entitled to transfer to the new employer with the same length of service and under the same terms and conditions (usually with the exception of pension entitlements) that are in place on the date of transfer.
What are Employee Rights on Business Transfers?
Employees are protected from dismissal, except where there are economic, technical or organisational reasons that necessitate this. Employers need to give any planned contract terminations careful consideration to ensure compliance with these exceptions and also with any requisite procedures that have to be followed in carrying out these terminations.
Employers must also comply with their obligations to provide employees with the necessary information regarding the transfer of ownership, at least 30 days or “in good time” prior to the transfer occurring.
There are various legal considerations involved in respect of the treatment of employees on the transfer of ownership of a business or undertaking.
Fachtna O’Driscoll Solicitors have many years of combined experience in dealing with employment disputes and can provide advice to both employers and employees.
