We are about to lose a contract to a competitor and, as I understand Transfer Regulations legislation, the employees specifically employed under this contract will transfer with it. Could you advise if the employees have discretion in this matter, i.e. can they elect to remain with this company and if so, are we obliged to find them alternative positions within the company?

Posted in : First Tuesday Q&A ROI on 2 November 2010
Matheson
Matheson

The loss of a contract does not automatically trigger the application of the European Communities (Protection of Employees of Transfer of Undertakings) Regulations 2003. It will have to be determined whether there is a transfer of an economic entity which retains its identity. If the Regulations do apply, any employees who are assigned to that economic entity will be entitled to transfer to the new employer, on their existing terms and conditions of employment, with their lengths of service intact.

Employees can refuse to transfer, but if their jobs no longer exist with the old employer,

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Back to Q&A's This article is correct at 03/09/2015
Disclaimer:

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Matheson
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