Employee rights in a business transfer
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Transfer of Undertakings Protection of Employment Regulations were first introduced in 1981 and updated in 2006 to cover situations where services are outsourced.
The regulations apply when a business is transferred to a new employer, or when a contractor takes on a contract to provide a service from another contractor.
The regulations mainly aim to preserve the continuity of employment terms and conditions when a relevant transfer takes place. The exception to this is pension provision.
The regulations contain specific provisions to protect employees from dismissal before or after a relevant transfer.
Recognised trade unions have the right to be informed about prospective transfers. URTU received £1,000 compensation for each of its 11 members in 2008 because DHL Exel did not provide information on the transfer of jobs after losing a contract from Premier Foods.