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Transfers & Outsourcing - Relevant Employees

Relevant Employees Transfers and Outsourcing

If you are involved in the transfer of a business as a going concern or outsourcing a business unit it will be necessary to take into account the fact that those hitherto employed within that business (or assigned to the business) may well have the right to continue to be employed by the transferee. It is therefore important to be aware which employees are likely to transfer the transferee with the business under the Regulations.

The transfer of undertaking regulations can potentially apply to all those employees who were assigned to the transferred business immediately before serious negotiations leading to the transfer began.

An employee dismissed for a reason connected with the transfer (before or after the transfer) will automatically have a claim against the transferee for unfair dismissal.

However, if the employee was dismissed by the transferor for a reason unconnected with the transfer (e.g. for misconduct) then the employee's remedy in that situation (if any) would be against the transferor.

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