TRANSFER of undertakings occurs when a business or part of a business is taken over by another employer as a result of a merger or transfer. When a transfer takes place there is a legal obligation on the new employer to take on the existing staff of the business or the part of the business concerned.
The legislation governing a transfer of undertakings is contained within a European Council Directive 2001/23/EC. This was introduced into Ireland in 2003. The employee’s accrued service with his or her original employer is deemed to have been with the new employer. The employee is entitled to terms and conditions of employment with the new employer which are no less favourable than those he or she had with the previous