Redundancy

The new employer cannot make employees redundant just because they were transferred from another employer.

The new employer can consult about redundancies before the transfer if the old employer agrees.

If an employee is made redundant for an ‘economic, organisational or technical’ reason involving changes to the workforce, they may be entitled to a redundancy payment.

Example

After a transfer, a new employer has to close down part of a company because it’s not performing. This means the business does not need people with a certain specialist skill, and therefore makes an employee redundant. The employee could be entitled to a redundancy payment.