S.I. No. 306/1980 - European Communities (Safeguarding of Employees' Rights on Transfer of Undertakings) Regulations, 1980


S.I. No. 306 of 1980.

EUROPEAN COMMUNITIES (SAFEGUARDING OF EMPLOYEES' RIGHTS ON TRANSFER OF UNDERTAKINGS) REGULATIONS, 1980

I, GENE FITZGERALD, Minister for Labour, in exercise of the powers conferred on me by section 3 of the European Communities Act, 1972 (No. 27 of 1972), and for the purpose of giving effect to Council Directive No. 77/187/EEC of 14 February 1977(1), hereby make the following Regulations:

(1)OJ No. L 61 of 5.3.77 p. 26-28

1. (1) These Regulations may be cited as the European Communities (Safeguarding of Employees' Rights on Transfer of Undertakings) Regulations, 1980.

(2) These Regulations shall come into operation on the 3rd day of November, 1980.

2. (1) In these Regulations—

"the Council Directive" means Council Directive No. 77/187/EEC of 14 February, 1977(1);

(1)OJ No. L 61 of 5.3.77 p. 26-28

"the Minister" means the Minister for Labour.

(2) A word or expression that is used in these Regulations and is also used in the Council Directive shall, unless the context otherwise requires, have the meaning in these Regulations that it has in the Council Directive.

3. The rights and obligations of the transferor arising from a contract of employment or from an employment relationship existing on the date of a transfer shall, by reason of such transfer, be transferred to the transferee.

4. (1) Following a transfer, the transferee shall continue to observe the terms and conditions agreed in any collective agreement on the same terms applicable to the transferor under that agreement, until the date of termination or expiry of the collective agreement or the entry into force or application of another collective agreement.

(2) Regulation 3 of these Regulations and paragraph (1) of this Regulation shall not apply in relation to employees' rights to old-age, invalidity or survivors' benefits under supplementary company or inter-company pension schemes outside the Social Welfare Acts, 1952 to 1979, but the transferee shall ensure that the interests of employees and of persons no longer employed in the transferor's business at the time of the transfer in respect of rights conferring on them immediate or prospective entitlement to old-age benefits including survivors' benefits, under such supplementary company pension schemes are protected.

5. (1) The transfer of an undertaking, business or part of a business shall not in itself constitute grounds for dismissal by the transferor or the transferee and a dismissal, the grounds for which are such a transfer, by a transferor or a transferee is hereby prohibited. However, nothing in this Regulation shall be construed as prohibiting dismissals for economic, technical or organisational reasons entailing changes in the work-force.

(2) If a contract of employment or an employment relationship is terminated because a transfer involves a substantial change in working conditions to the detriment of the employee concerned, the employer concerned shall be regarded as having been responsible for termination of the contract of employment or of the employment relationship.

6. Where an undertaking or business, or part of a business, the subject of a transfer preserves its autonomy after the transfer, the status and function, as laid down by the laws, regulations or administrative provisions of the State, of the representatives or of the representation of the employees affected by the transfer shall be preserved by the transferee concerned.

7. (1) The transferor and transferee concerned in a transfer shall inform the representatives of their respective employees affected by the transfer of—

( a ) the reasons for the transfer,

( b ) the legal, economic and social implications of the transfer for the employees, and

( c ) the measures envisaged in relation to the employees,

and the information shall be given—

(i) by the transferor to the representatives of his employees in good time before the transfer is carried out, and

(ii) by the transferee, to the representatives of his employees in good time, and in any event before his employees are directly affected by the transfer as regards their conditions of work and employment.

(2) If the transferor or the transferee concerned in a transfer envisages measures in relation to his employees, he shall consult his representatives of the employees in good time on such measures with a view to seeking agreement.

(3) Where, in the case of a transfer, there are no representatives of the employees in the undertaking or business of the transferor or, as the case may be, in the undertaking or business of the transferee, the transferor or transferee, as may be appropriate, shall cause —

( a ) a statement in writing containing the particulars specified in subparagraphs (a), (b) and (c) of paragraph (1) of this Regulation to be given in good time before the transfer is carried out to each employee in the business or undertaking, and

( b ) notices containing the particulars aforesaid to be displayed prominently in good time before the transfer is carried out at positions in the workplaces of the employees where they can be read conveniently by the employees.

8. (1) Where an officer of the Minister is of opinion that a transaction constitutes a transfer, he may request the parties thereto—

( a ) to furnish to him such information as he may reasonably require for the purpose of determining whether the transaction constitutes a transfer, and

( b ) to make available for inspection at the place where they are usually kept such books and documents in their power and control as he may reasonably require for the purpose aforesaid and specifies, and

( c ) to permit the officer to inspect, copy and take extracts from the books and documents,

and for the purpose of his functions under this regulation, the officer may at all reasonable times enter any place where there are kept books or documents to which a request by him under this Regulation relates.

(2) Any person who fails or refuses to comply with a request of, or obstructs or interferes with, an officer of the Minister in the course of exercising a power conferred on him by this Regulation shall be guilty of an offence.

(3) An officer of the Minister exercising powers under this Regulation shall be furnished by the Minister with a certificate authorising such exercise and, when exercising any such powers, the officer shall, if requested by any person affected, produce the certificate to the person.

9. (1) (a) A person who contravenes a provision of these Regulations (other than Regulation 8 of these Regulations) shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding £500.

(b) A person who contravenes Regulation 8 of these Regulations shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding £300.

(2) An offence under these Regulations may be prosecuted by the Minister.

(3) Notwithstanding section 10(4) of the Petty Sessions (Ireland) Act, 1851, proceedings for an offence under these Regulations may be instituted within 12 months from the date of the offence.

10. Where an offence under these Regulations is committed by a body corporate or by a person purporting to act on behalf of a body corporate or an unincorporated body of persons and the offence is proved to have been committed with the consent or approval of, or to have been facilitated by any neglect on the part of any person, who when the offence was committed was a director, member of the committee of management or other controlling authority of the body concerned, or the manager, secretary or other officer of the body, that person shall also be deemed to have committed the offence and may be proceeded against and punished accordingly.

GIVEN under my Official Seal this 3rd day of October, 1980.

GENE FITZGERALD

Minister for Labour.

EXPLANATORY NOTE

These Regulations safeguard the rights of employees arising from an employment contract or relationship in the event of a transfer of a business, in which they are employed, which entails a change of employer.