Chapter VIII: Unfair Dismissal
197. Transfer of contract of employment

 

  1. A contract of employment may not be transferred from one employer (referred to as "the old employer") to another employer (referred to as "the new employer") without the employee’s consent, unless-

    1. the whole or any part of a business, trade or undertaking is transferred by the old employer as a going concern; or

    2. the whole or a part of a business, trade or undertaking is transferred as a going concern-

      1. if the old employer is insolvent and being wound up or is being sequestrated; or

      2. because a scheme of arrangement or compromise is being entered into to avoid winding up or sequestration for reasons of insolvency.

  2.  

    1. If a business, trade or undertaking is transferred in the circumstances referred to in subsection (1)(a), unless otherwise agreed, all the rights and obligations between the old employer and each employee at the time of the transfer continue in force as if they were rights and obligations between the new employer and each employee and, anything done before the transfer by or in relation to the old employer will be considered to have been done by or in relation to the new employer.

    2. If a business is transferred in the circumstances envisaged by subsection (1)(b), unless otherwise agreed, the contracts of all employees that were in existence immediately before the old employer's winding-up or sequestration transfer automatically to the new employer, but all the rights and obligations between the old employer and each employee at the time of the transfer remain rights and obligations between the old employer and each employee, and anything done before the transfer by the old employer in respect of each employee will be considered to have been done by the old employer.

  3. An agreement contemplated in subsection (2) must be concluded with the appropriate person or body referred to in section 189(1).

  1. A transfer referred to in subsection (1) does not interrupt the employee's continuity of employment. That employment continues with the new employer as if with the old employer.

  1. The provisions of this section do not transfer or otherwise affect the liability of any person to be prosecuted for, convicted of, and sentenced for, any offense.