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Transfer of Undertakings

Dáil Éireann Debate, Thursday - 17 June 2021

Thursday, 17 June 2021

Questions (171)

Niall Collins

Question:

171. Deputy Niall Collins asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will advise on a matter (details supplied); and if he will make a statement on the matter. [32577/21]

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Written answers

The European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003 (S.I. No. 131 of 2003) apply to any transfer of an undertaking, business or part of a business from one employer to another employer as a result of a legal transfer (including the assignment or forfeiture of a lease) or merger.

The main provisions of the Regulations provide that all the rights and obligations of an employer under a contract of employment (including terms inserted by collective agreements), other than pension rights, are transferred to the new employer on the transfer of the business or part thereof. The new employer must also continue to observe the terms and conditions of any collective agreements until they expire or are replaced.

Both the outgoing and incoming employers are obliged to inform their respective employees’ representatives of, inter alia, the reasons for the transfer and the legal, social and economic implications of the transfer.

The Redundancy Payments Act 1967 provides where there is a change in the ownership of a business and an employee continues, by arrangement, to work for the new owner with no break in employment, the employee is not entitled to any redundancy payment at the time of the change of ownership. However, continuity of employment is preserved for the purpose of the redundancy payments in the event of a dismissal or redundancy by the new employer at any future date.

The Workplace Relations Commission (WRC) is the organisation mandated to secure compliance with employment rights legislation. Employees can refer complaints to and seek adjudications from the WRC, including in situations where an employee considers that a breach of the The European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003 has occurred or there is a dispute between an employer and employee in relation to redundancy entitlements.

The WRC’s Customer Service and Information Unit provides information on employment, equality and industrial relations rights and obligations. A complaint may be made using the Workplace Relations e-Complaint Form available on the WRC website.

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