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B. Key Considerations

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Principle Aims of legislation

The principle aims of the legislation are:

  • Protection of conditions of employment and contracts of employment of individual Employees involved in a transfer.
  • Under limited circumstances, making provisions for the protection of employment in a transfer.
  • Ordinarily prohibiting the dismissal of an Employee by reason of a transfer of undertakings.
  • Requiring the transferor/transferee to inform the representatives of the Employees affected by the transfer of the legal, social and economic implications of the transfer and consult with them regarding any proposed measures.
  • Ensuring that that the primary responsibility for an Employee’s employment rights are passed from transferor to transferee.
  • Ensuring that any collective agreement that was in place before the transfer is honoured.
  • Protecting continuity of representative rights.

Definitions

  • Transfer - means the transfer of an economic entity which retains its identity
  • Economic Entity - means an organised grouping of resources which has the objective of pursuing an economic activity whether or not that activity is for profit or whether it is central or ancillary to another economic or administrative entity.
  • Transferee - means any natural or legal person who, by reason of a transfer within the meaning of these Regulations, becomes the employer in respect of the undertaking, business or part of the undertaking or business
  • Transferor - means any natural or legal person who, by reason of a transfer within the meaning of these Regulations, ceases to be the employer in respect of the undertaking business or part of the undertaking or business