Is an employee redeployed if they are transferred to another company?

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Is an employee redeployed if they are transferred to another company?

Is an employee redeployed if they are transferred to another company? This question was recently sent to our Ask an Expert service.

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Is an employee redeployed if they are transferred to another company?

This question was recently sent to our Ask an Expert service.
 

Q: A manager and his direct team were informed that their roles will be transferred to another
company. This company is a separate contractual entity and business to their existing company.

The ‘new company’ is a client of the current company and has effectively taken on the service that the current company offers in house.

The employees will be offered the same terms and conditions of employment, similar location, same salary, and service and annual leave will be recognised.

Should the employees be paid redundancy as they are still being made redundant from the existing company?


A: This sounds like a genuine transfer of business in that one company will cease outsourcing work to a second company and instead bring that work and those employees in-house.

If an employee refuses to transfer they will not be entitled to a redundancy if the new role is substantially the same as their old role (considering pay, status, hours, duties, location).

However, if the new role they refuse is substantially different to their old role then they would be entitled to a redundancy.
 
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