Background to Acquired Rights Legislation The European Union Acquired Rights Directive 1977 was designed to protect the interests of employees on the transfer of a business. Regulations were made in 1980 and 2003 to implement Directive. The key protection is that continuity of employment is preserved. The transferee of the business must afford employees the same terms and conditions as […]
Transfer of Undertaking The Acquired Rights legislation applies to the transfer of an undertaking. This may be the whole of or a part of a business. In most cases, there will be a transfer of an economic entity which retains its identity. The business / undertaking may retain its identity, but need not necessarily do so. An economic entity in […]
Mandatory Transfer The Acquired Rights legislation provides for the transfer of the rights and obligations of employers and employees in the transfer of an undertaking. The mutual rights and obligations of employer and employee, pass from the transferor to the transferee. The transfer is effectively mandatory. The employment contract is transferred. The employee cannot claim that he has been dismissed […]
Information and Consultation The representatives of the employees who are affected by the transfer, or where there are no representatives, the employees, must be informed of the proposed date of transfer, the legal economic and social implications, and the measures envisaged in relation to employees. This obligation is in addition to the general obligations in relation to information and consultation. […]