Transfer of Undertakings Regulations

If a business is taken over by another employer, the rights of the employees may be protected by legislation.

The Transfer of Undertakings Regulations are designed to safeguard employees’ rights in the event of a transfer and imposes the responsibility to ensure  it is carried out fully on both the previous and the new owners of the business.

For a transfer of undertaking to take place:

• There must be a change in the person (either an individual or a company) responsible for running the undertaking/business
• The previous economic activity of the undertaking/business must be carried on by the new employer
• The undertaking/business must be transferred as a “going concern”.

Under the Regulations the new employer is legally obliged to consult with and take on the existing employees of the business. The terms and conditions and employer’s obligations in the contract of employment are automatically transferred to the new employer, except for pensions. If there is a collective agreement the new employer must continue to its terms and conditions until it expires or is replaced.

MSS will bring you through the transfer process ensuring that all you are fully compliant with all relevant legislation throughout the process.