Transfer Of Business

The FWA provides a different scheme to deal with the transfer of employment rights and obligations if there is a "transfer of business" and a new employer takes on employees of the old employer.

The new transfer of business rules extend coverage to a wider range of transactions including outsourcings and company reorganisations. The 12 month limitation on transferring instruments is removed so transferring instruments now continue until they are terminated or replaced. A transfer of business will occur where:

• An employee changes employer;
• The work the employee does for each employer is the same or substantially similar;
• There is a particular connection between the old and new employers (ie either a transfer of assets used in connection with the work, or an outsourcing, or an insourcing or where the two employers are "associated employers".