A transfer of undertakings takes place when a business, regardless of its size and of its method of trading, is transferred from one employer to another as a going concern. It can also occur when an employer appoints a contractor to provide services or when one contractor is replaced by another.
Employers who are considering a business acquisition are often understandably preoccupied with financing the deal and with future operational issues such as the profitability of the business which is being transferred, its location, current customer base and products/ services. Similarly, the decision to appoint a contractor will typically focus on the cost and the levels of service to be provided. The employees who are affected by the transfer are all too frequently low on the agenda. But this can be the trickiest issue of all, even for experienced managers.
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