Transfer of Undertaking
/ˈtrænsfər əv ˈʌndərˌteɪkɪŋ/
Definitions
- (n.) The legal process by which a business or part of a business is transferred to another party, typically preserving employees' rights.
The transfer of undertaking was completed without affecting the employees’ contracts.
- (n.) A concept under labor law ensuring that employees’ rights and obligations transfer to the new employer when a business is sold or transferred.
Under the transfer of undertaking regulations, workers retain their employment terms despite the change in ownership.
Forms
- transfer of undertaking
- transfers of undertaking
Related terms
See also
Commentary
Typically governed by regulations such as TUPE in the UK, transfer of undertaking safeguards continuity of employment and contractual terms during business sales or reorganizations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.