Do the Transfer of Undertakings Regulations apply in circumstances where a company goes into voluntary liquidation and its business is closed with all employees being made redundant and then a buyer is subsequently found for the business, for example, a month or two later? Do the employees automatically transfer to the new owner?

Posted in : First Tuesday Q&A ROI on 1 February 2011
A&L Goodbody
A&L Goodbody
Issues covered:

Owing to the chronology of events outlined in this question, it would appear that no “transfer” within the meaning of the European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003 occurred, given that there was no transfer of a business or part of a business from the transferor to transferee which retained its identity. If there is no “transfer”, then no right to transfer arises. It would also appear that at the time of the redundancies, there was no prospect of a buyer and this fact would assist in countering any argument that an individual might attempt to make regarding an alleged attempt to avoid the Regulations.

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

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A&L Goodbody
A&L Goodbody

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