(1)The contract of employment of an employee transferred under the scheme—
(a)is not terminated by the transfer; and
(b)has effect from the date of transfer as if originally made between the employee and the transferee.
(2)Where an employee is transferred under the scheme—
(a)all the rights, powers, duties and liabilities of the old employer under or in connection with the contract of employment are by virtue of this subsection transferred to the transferee on the date of transfer; and
(b)anything done before that date by or in relation to the old employer in respect of that contract or the employee is to be treated from that date as having been done by or in relation to the transferee.
This subsection does not prejudice the generality of subsection (1).
(3)Subsections (1) and (2) do not transfer an employee’s contract of employment, or the rights, powers, duties and liabilities under or in connection with it, if he informs the old employer or the transferee that he objects to the transfer.
(4)Where an employee objects as mentioned in subsection (3), his contract of employment with the old employer is terminated immediately before the date of transfer; but he is not to be treated, for any purpose, as having been dismissed by that employer.
(5)This section does not prejudice any right of an employee to terminate his contract of employment if a substantial change is made to his detriment in his working conditions.
But no such right arises by reason only that, by virtue of this section, the identity of his employer changes unless the employee shows that, in all the circumstances, the change is a significant change and is to his detriment.
(6)In this section—
“date of transfer” means the date of transfer determined under the scheme in relation to the employee;
“transferee” means the new employer to whom the employee is or would be transferred under the scheme;
and expressions used in this section and in the provision under which the scheme is made have the same meaning as in that provision.
Commencement Information
I1S. 115 wholly in force at 1.7.2001; s. 115 not in force at Royal Assent see s. 122; s. 115 in force for E. at 16.3.2001 by S.I. 2001/1210, arts. 1(3), 2(d); s. 115 in force for W. at 1.7.2001 by S.I. 2001/2190, art. 2, Sch. Table