Purposes of Tranferrence.
The
Regulations preserve employees'
terms and conditions when a business
or undertaking, or part of one, is
transferred to a new employer. Any
provision of any agreement (whether
a contract of employment or not) is
void so far as it would exclude or
limit the rights granted under the
Regulations.
The Regulations have the effect
that:
- Employees employed by the
previous employer when the
undertaking changes hands
automatically become employees
of the new employer on the same
terms and conditions. It is as
if their contracts of employment
had originally been made with
the new employer. Thus
employees' continuity of
employment is preserved, as are
their terms and conditions of
employment under their contracts
of employment (except for
certain occupational pension
rights).
- Representatives of employees
affected have a right to be
informed about the transfer.
They must also be consulted
about any measures which the old
or new employer envisages taking
concerning affected employees.
