Restructuring transfers and exclusions
A restructuring may transfer employment to a related or unrelated employer through a merger, takeover, sale of a business division or formation of a subsidiary. The existing contract continues unless the employee agrees to changes. An asset-only or share transfer, moving operations overseas, outsourcing support functions, or changing service providers through competitive tender is not this type of employment transfer.
Employee and employer duties
Employees must receive notice and relevant information, have an opportunity to consult, and retain existing terms; they then serve the new employer. The original employer must notify employees or their union within reasonable time, explain transfer terms and enable consultation, preserve continuous service and avoid less favourable conditions.
New employer and dispute resolution
The new employer must tell the previous employer about matters affecting employees, assume rights, powers, obligations and liabilities under relevant union contracts or agreements, and keep employee terms unchanged unless changes are agreed. Parties should negotiate disputes; if they cannot agree new terms, either may terminate with notice. The Commissioner for Labour can delay or prohibit a transfer, or order a transfer on terms considered fair.