What consultation has to take place before a transfer of business?

In all proposed transfers of undertakings there is a requirement on the transferring employer and proposed new employer to inform the recognised trade union or unions, or, if there are no recognised unions, employee representatives elected by the workforce, in advance of the transfer.

Specific information must be given, including:

• the date of transfer
• reasons for transfer
• legal, economic and social implications of the transfer
• what measures which will be taken in connection with the transfer and how they will affect the employees

The purpose of the advance information is to enable discussions about the implications for the workforce to take place with representatives.