Part 1

Restructuring of Royal Mail group

Transfer of property etc

Transfer of employees otherwise than under transfer scheme
9
1
This section applies if an agreement between companies within subsection (3) provides for the transfer from one to the other of rights and liabilities under contracts of employment.
2
This section also applies if—
a
employees of a company within subsection (3) (“company A”) are provided to another company within that subsection (“company B”),
b
an agreement between the companies provides for the employees to cease to be provided to company B, and
c
company B intends to employ the employees.
3
A company is within this subsection if—
a
it is the original holding company or a subsidiary of that company, and
b
it is wholly owned by the Crown.
4
At any time before the agreement comes into force, the Secretary of State may—
a
in a case within subsection (1), designate any contract of employment the rights and liabilities under which are to be transferred under the agreement, and
b
in a case within subsection (2), designate any employee of company A who is provided as mentioned in subsection (2)(a).
5
The designation may specify or describe the contracts of employment or employees.
6
On the coming into force of the agreement, the Transfer of Undertakings (Protection of Employment) Regulations 2006 apply in relation to—
a
the transfer of designated contracts of employment, and
b
the cessation of the provision of designated employees to company B,
whether or not the agreement would otherwise be regarded for the purposes of those regulations as giving rise to a relevant transfer.
7
Where by virtue of the agreement a designated employee of a company within subsection (3) (“the transferor”) becomes an employee of another company within that subsection (“the transferee”)—
a
a period of employment with the transferor is to be treated as a period of employment with the transferee, and
b
the transfer to the transferee is not to be treated as a break in service.