| Article 3 provides the following : Obligations and rights of the Transferor arising from an employment relationship shall transfer to the Transferee but the Transferor will continue to be liable in addition to the Transferee. |
| The Transferee must continue to observe the terms and conditions which, in any event, must continue for a period of not less than one year from the Transfer. |
| Article 4 : States that Transfers per se shall not entitle the Transferor or Transferee to dismiss the employee. If the Transfer involves a substantial change in the working conditions to the detriment of the employee, the employer shall be deemed to have terminated the Contract. |
| Article 5 : Deals with a business which preserves its autonomy, status and function and the rights of the employees must be preserved. |
| Article 6 : Requires that the Transferor and Transferee inform the employee of the following: |
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This information must be furnished in good time before the Transfer is carried out. This is covered under pages 29 to 34 of the EC Labour Legislation in Ireland Book by Patricia Connell. Francis Meenan's book also deals with Transfer of Undertakings in Chapter 11, Transfer of a Business, page 139. The E.C. Directive referred to in the previous paragraph was brought into Law in Ireland under the European Communities (Safe guarding of employees rights on Transfer of Undertaking Regulations, 1980 -SI No 306 of 1980). In order to establish whether the Regulations apply, the most important question is "Is there a change in the identity of the employer and is there a Transfer of business as a going concern". If the answer is yes, then the Regulations apply. Contracting out of services by an employer have been held to come within the ambit of the Regulations (Bannen -v- Employment Appears Tribunal and Drogheda Town Centre, 1993 IR 500). The sale of a Company by a Receiver may come within the scope of the Regulations. |
