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When that happens, because the employer (i.e. the original company) remains the same legal entity, all contractual obligations stay the same. The directive and regulations apply to other forms of transfer, through the sale of physical assets and leases. The regulations also apply in some cases for work transferred to contractors.
The Directive stipulates that any employee's contract of employment will be transferred automatically on the same terms as before in the event of a transfer of the undertaking. This means that if an employer changes control of the business, the new employer cannot reduce the employees' terms and conditions, unless the Directive's exception ...
The Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 (SI 2002/2034) are a UK statutory instrument aimed at protecting employees who have fixed-term contracts of employment. The regulations are in part intended to implement the European Union's Fixed-term Work Directive 1999 (99/70/EC) on fixed term workers.
A Letter of Understanding (LOU) is a formal text that sums up the terms of an undertakings of a contract which may have been negotiated up to this point only in spoken form or otherwise informally. It reviews the terms of an agreement for a service , a project or a deal and is often written as a step before a more detailed contract is issued.
Outsourcing is a business practice in which companies use external providers to carry out business processes, that would otherwise be handled internally. [1] [2] [3] Outsourcing sometimes involves transferring employees and assets from one firm to another.
Employers are vicariously liable for all agents acting for them in the "course of employment" whenever their actions have a "close connection" to the job, and even if it breaks an employer's rules. [174] An employer only has a defence if an employee, on a "frolic of his own", was not placed by an employer in a position to cause harm.