Case Study On Transfer Of Business

Company A employs 60 employees, and have decided on the transfer of employees from their existing Malta subsidiary company, as 'Company A' to their newly established branch 'Company B'. They wish to seek advice regarding the legal process and proper method for the transfer of employees from Company A to Company B. This is with the scope that the transfer of employees is carried out on an equal footing, meaning that the employment conditions of the employees remain the same following the transfer of business.

Transfer of Business

Whenever a business, undertaking or part thereof is transferred to another entity, the rights of the employees must be safeguarded and all contracts and rights emanating therefrom of employment between the employee and their new employer must continue to have full effect. In consideration of a transfer, any contract of employment shall be retained and considered as if originally entered between the employee and the new employer.