When it comes to Business Takeovers – these are stressful matters for all employees, who have rights to receive information and in some circumstances be consulted with.
Consultation with staff affected by a business takeover or transfer is supposed to take place in good time before the event occurs, and be a real opportunity for employees to participate in the process and have their say.
An employee may have a Tribunal claim if the employer fails to inform and, where appropriate, consult.
Usually the employees of the transferor will automatically transfer to the transferee. All of the transferer’s rights, powers, duties and liabilities pass to the transferee.
Dismissals connected with the transfer may be automatically unfair. They may potentially be fair if the dismissla is for an economic, technical or organisational reason.
There are significant limits on what steps an employer can take to vary contracts of employment following a business transfer.
We are able to advise you of your rights in such circumstances.