- When does the Transfer of Undertakings Directive apply?
The directive applies when an economic entity (e.g., a department, branch, or function) is transferred from one employer to another. Employees in the entity are automatically transferred to the new employer under the same terms . - What happens to employees’ contracts during a transfer?
Employees’ contracts transfer automatically with all rights and obligations intact to the new employer, including salary, seniority, and benefits . - Can employees opt out of a transfer?
Yes; employees have the right to object to the transfer if they wish. If they do, their contract ends automatically with no further obligation from the old employer . - Can an employee’s pay be changed after a transfer?
No; the employee’s pay and terms must remain the same after the transfer unless the new employer and employee mutually agree to changes . - What are the employer’s obligations to inform employees about the transfer?
Employers must inform employees and consult with the works council about the transfer before the transfer happens . - How long are the old and new employers liable for employee rights after a transfer?
Both the old and new employer are jointly liable for any unpaid wages or benefits from before the transfer for up to 1 year . - Can an employee be dismissed because of a transfer?
No; employees cannot be dismissed due to the transfer itself. Such dismissals are automatically void under the law . - What happens if the transfer involves more than one employer?
The transfer process applies equally to all employers involved; employees in all related businesses must have their contracts honored by the new owners . - What about pensions during a transfer?
The pension scheme must be continued by the new employer unless the buyer has its own equivalent scheme, in which case employees may transition to that scheme . - How should employers prepare for a transfer of employees?
Employers should review employment contracts, consult with the works council, and inform affected employees about how the transfer will affect their terms, including pensions and benefits . - Can the new employer change employment terms post-transfer?
No, terms and conditions should remain unchanged unless the new employer and employees mutually agree to modifications . - Are employees entitled to compensation if they object to a transfer?
If employees opt out of the transfer, they have no claim for compensation, but they may be entitled to other benefits (e.g., severance pay) depending on the situation . - Is employee consent needed for the transfer?
No; employees are automatically transferred under the law, but they have a right to object and refuse the transfer .
