Implications for post-transfer relocation redundancies

This new law is most likely to be used where the incoming employer operates from a different geographical location a significant distance away from the established base of the business, and where alternative arrangements such as home working are not possible. In practice, these new rules are likely to encourage incoming employers to start consulting before the transfer with those employees who cannot relocate, with a view to making redundancies as soon as possible after the transfer date. In so doing, the employer’s aim will be to cut wages by reducing the length of collective consultation.

These provisions only affect collective, not individual, consultation. After the transfer, the new employer must carry out fair and non-discriminatory individual redundancy consultation in the usual way. They must also consider alternative employment possibilities and give full statutory or contractual notice of any dismissals. Otherwise, the employer risks multiple unfair dismissal claims.

A transferee that targets union reps or activists for redundancy will risk a claim for automatically unfair dismissal (section 105, ERA 96, section 152, TULRCA).

A transferee that offers incoming employees any form of inducement to give up having their terms and conditions collectively bargained by their union risks multiple compensation claims under section 145B, TULRCA (see page 63).