Transfer of undertaking definition

What does Transfer of undertaking mean?

The transfer of a business from one undertaking to another.

The transfer of an undertaking is regulated by the Transfer of Undertakings (Protection of Employment) Regulations 2006. Broadly speaking, the Regulations provide that in a transfer of an undertaking situation, the employment and employment rights of the transferring employees remain protected and transfer to the new owner on the same terms and conditions. The intention behind the Regulations is to prevent any abuse of employee terms and conditions in such a scenario. The Regulations apply to the sale of a business or a service provision change (commonly known as outsourcing). The Regulations also require the transferor to inform and consult with employees about any impact of the transfer on their employment and terms and conditions.

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Transfer of undertaking is referenced 2 in Halsbury's Laws of England

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