The Transfer of Undertaking Regulations 2006 affects many businesses. Either part of the business is sold off and the employees move with the work or the business loses a key contract to a competitor and those employees who were assigned to that contract transfer automatically.
There are strict rules on informing and consulting with those affected employees and failure to comply with these can mean up to 13 weeks’ full pay.
It is automatically unfair to dismiss employees in anticipation of a transfer and the new employer cannot dismiss an employee who has transferred except for an ‘economic, technical or organisational’ (‘ETO’) reason. Equally terms and conditions cannot be changed after the transfer unless for an ETO reason.
This is a complex area of the law and we can guide employers through these rules and help them to manage their employees.