Common use of Employee Protection Provision Clause in Contracts

Employee Protection Provision. The purpose of this provision is to provide protection for the employment of an affected employee if the employer’s business is restructured. Restructuring, in relation to the employer’s business means: a) Entering into a contract or arrangement under which the employer’s business (or part of it) is undertaken for the employer by another person; or b) Selling or transferring the employer’s business (or part of it) to another person c) In the event of a restructuring that may affect an employee’s future employment, the employer will undertake the following steps: d) The employer shall initiate and agree on a negotiation process with the potential new employer around the extent to which the proposed restructuring related to the affected employee’ position as soon as practicable. e) The employer will negotiate with the potential new employer the following: i. Whether or not the employee’s position would transfer to the potential new employer; ii. Where an employee’s position would transfer to the new employer, the terms and conditions of employment that would be offered to them by the potential new employer; and iii. The proposed date that an employee would commence employment with the potential new employer. In the event that an employee is not offered employment with the potential new employer for whatever reason, their redundancy entitlements will be determined in accordance with the redundancy provision of this Agreement. Note the application of Part 6A of the Employment Relations Act 2000 to kitchen, cleaning and laundry workers.