09. Transfer of Undertakings
When businesses undergo mergers, acquisitions, or other organizational changes, the transfer of employees is subject to complex legal regulations. L&E Global, as an international alliance of employment law firms, provides multinational companies with expert guidance on navigating the laws governing business transfers, ensuring compliance with employee rights and employer obligations in each jurisdiction.
Laws Regulating Business Transfers
Different countries have specific laws that regulate how employees are treated during business transfers. In many regions, legislation like the EU’s Transfer of Undertakings (Protection of Employment) Regulations (TUPE) or the Acquired Rights Directive (ARD) ensures that employees’ contracts are automatically transferred to the new employer without altering their terms and conditions. L&E Global offers tailored advice to businesses on understanding these regulations and ensuring smooth, compliant employee transitions during mergers, acquisitions, or outsourcing.
Employee Rights During Transfers (TUPE, ARD)
Employee protection is a key aspect of transfer of undertaking laws. Employees often have the right to retain their existing contracts, including pay, benefits, and seniority, under the new employer. Additionally, consultation with employees or their representatives is typically required before any transfer takes place. L&E Global ensures that businesses understand their obligations and the rights of their employees during transfers, helping to avoid disputes and ensuring legal compliance.
Legal Obligations for Employers During Organizational Changes
In addition to maintaining employees’ rights, employers must meet specific legal obligations during a business transfer, such as providing advance notice, conducting consultations, and ensuring transparency about the changes. L&E Global helps businesses fulfill these requirements and manage the legal and operational challenges of transfers, ensuring that organizational changes are handled efficiently and in accordance with local laws.
By partnering with L&E Global’s network, companies can successfully navigate complex business transfers while protecting employee rights and ensuring compliance with regional laws.