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What right do I have to be consulted on being transferred to a new employer?

If the transfer is a relevant transfer of an undertaking under the Transfer of Undertakings ((Protection of Employment) Regulations 1981 (commonly called TUPE), the transferring employer and the prospective new employer or employers have a duty to inform and consult their respective employee representatives.

Appropriate employee representatives are representatives of a trade union recognised for collective bargaining purposes or, if there are no such representatives, employees appointed or elected by the affected employees. The onus is on the employer to arrange elections in the absence of any existing consultative arrangements. If the employees fail to elect representatives the employers must give the required information to each employee affected by the transfer. The information which the employer must give includes:

  • the fact that a relevant transfer is to take place
  • when that transfer is to take place
  • the reasons for the transfer
  • the legal, economic and social implications of the transfer for affected members
  • any measures that the new employers expect to take in relation to the employees who will be transerred

This information should be given to the representatives long enough before the transfer is closed to give reasonable time for consultation. Failure to consult could result in a tribunal award of compensation to each affected employee of up to 13 weeks' pay.