Employees’ Rights in Case of a Transfer of Undertaking
Where the transfer is covered by section 18A of the Employment Act, employees would generally have the right to (i) be notified of the transfer and of matters relating to the transfer; (ii) consult with the employer; and (iii) preserve the original terms and conditions of employment under the new employer.
Requirements for Predecessor and Successor Parties
Where the transfer is covered by section 18A of the Employment Act, the employer would need to ensure that (i) affected employees or their union are notified of the transfer within a reasonable period and regarding the terms of transfer; (ii) ensure there is no break in employment during the transfer; and (iii) ensure that the original terms and conditions of employment are preserved after the transfer.
The new employer would need to ensure that (i) the previous employer is informed of all matters that will affect the employees, so as to ensure that the employees may be informed within a reasonable period; (ii) perform the previous employer’s rights, powers, duties and liabilities which are part of any contract or agreement with the employees’ union before the transfer; and (iii) ensure that the original terms and conditions of employment are preserved after the transfer (unless otherwise agreed).