What happens to staff if a business or part of it changes hands?
If a part of an undertaking is sold or transferred the staff employed in it become the employees of the transferee, who is obliged to honour all their terms and conditions of employment, and takes over any liabilities to the employees. Any member of staff dismissed because of the transfer is automatically counted as unfairly dismissed, unless it can be shown that it was because changes in the workforce were required due to economic, technical or organisational reasons. The transferee would be liable for any such claims. There is a legal requirement to provide information about the transfer to employee representatives, either the union if one is recognised, or elected representatives is not, and they must be consulted about any proposed changes due to the transfer. If the transferor fails to meet its obligations to the employees, the liability is on the transferee, so it is strongly recommended that the transferee takes great care in purchasing a business, getting the appropriate indemn
