The employees’ rights and obligations arising from the contract of employment transfer to the transferee. The transferee is prevented from making changes to the employees' terms and conditions as a result of the transfer.
For more information on terms and conditions of employment, see our factsheet on employment contracts.
The new employer is obliged to comply with any collective agreement in force at the time of the transfer. The transfer of an undertaking does not break an employee's service and the employee's continuity of service is therefore preserved. The liability to the old employer for personal injury transfers to the new employer on a transfer of undertakings.
The Regulations do not apply to employees' rights to old age, invalidity or survivors' benefits under supplementary or inter-company pension schemes falling outside the Social Welfare Acts. However, the Regulations do impose an obligation on a transferee to ensure that the interests of employees, and of persons no longer employed in the transferor's business, are protected in respect of rights conferring on them immediate or prospective entitlement to old age benefits including survivors' benefits.