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Transfer of undertakings

Transfer of Undertakings

The Transfer of Undertakings (Protection of Employment) Regulations 2006 sounds a little daunting, but in fact it is the UK’s version of a European act that protects you in the event your employer’s business is transferred to another organisation.

The main aim of the regulations is to protect your interests as an employee. This protection covers three main aspects:

  • To ensure you are not dismissed
  • To ensure that the terms and conditions of your contract of employment aren’t changed for the worse
  • That you or your representatives are kept informed and are consulted throughout the process of the transfer of business.

As you might expect from a regulation such as this there are many different circumstances that can arise, and the law surrounding these different circumstances can be difficult to grasp. For that reason it might be advisable to seek legal advice or to have someone with suitable experience to act as your advocate in the consultation and implementation of the transfer of business.

At Khan and Co. Solicitors we can bring a great deal of experience in this and other employment law to bear, and can act as your advocate or offer advice. Our offices in Wolverhampton and Birmingham will be happy to talk to you about the specific details of your employment in the event of a transfer of business.

It should be noted that circumstances such as the sale of shares in the company do not constitute a transfer of business under these regulations, as in this case the company is effectively left unchanged, so contracts and the obligations contained in those contracts remain unchanged.

The directive and regulations do however apply to other forms of transfer, such as the sale of a physical assets and plant, leases or property. It can also apply to business transferred to outside contractors, though not in every case. Again we would recommend you speak to an advisor about your particular situation.

The aspects of your contract that are protected under the regulations include such things as working hours, pay, length of service and similar aspects of your employment, but the protection does not extend  to your pension entitlement.

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