Common use of Sale, Transfer or Contracting Out Clause in Contracts

Sale, Transfer or Contracting Out. Where the employer is contracting out, selling or transferring all or part of the business, including the part of the business where the employee is employed, the following provisions will apply: (i) Where practicable, the employee will be consulted about any proposal to sell all or part of the business or to contract out or transfer work before a final decision is made. (ii) If the employer decides to proceed with the proposed restructure, it will negotiate with the new contractor/service provider with a view to endeavouring to have the new employer offer the employee employment on the same or similar terms and conditions and recognising service as continuous. The employee will be advised of timeframes for such negotiation, and for the acceptance of any offer of employment or of any application and interview process, as soon as possible. (iii) The employee is entitled to choose whether or not to accept employment with the contractor/service provider. In the event that the contractor/service provider offers the employee employment in terms of sub clause (ii) above, no redundancy situation will arise, and the employee will not be entitled to receive redundancy compensation, whether or not the employee chooses to accept the offer of employment. The employee will be entitled to one month’s notice of termination of employment with the employer (which is not in addition to any other notice period specified within this agreement). (iv) In the event that the contractor/service provider is not prepared to offer the employee employment in terms of sub clause (ii) above, or offers employment on lesser terms and conditions and/or without recognition of the employee's service, the employee will receive one month’s notice of termination (which is not in addition to any other notice period specified in this agreement) and redundancy compensation under this clause.

Sale, Transfer or Contracting Out. Where the employer is contracting out, selling or transferring all or part of the business, including the part of the business where the employee is employed, the following provisions will apply: (i) Where practicable, the employee will be consulted about any proposal to sell all or part of the business or to contract out or transfer work before a final decision is made. (ii) If the employer decides to proceed with the proposed restructure, it will negotiate with the new contractor/service provider with a view to endeavouring to have the new employer offer the employee employment on the same or similar terms and conditions and recognising service as continuous. The employee will be advised of timeframes for such negotiation, and for the acceptance of any offer of employment or of any application and interview process, as soon as possible. (iii) The employee is entitled to choose whether or not to accept employment with the contractor/service provider. In the event that the contractor/service provider offers the employee employment in terms of sub clause (ii) above, no redundancy situation will arise, and the employee will not be entitled to receive redundancy compensation, whether or not the employee chooses to accept the offer of employment. The employee will be entitled to one month’s notice of termination of employment with the employer (which is not in addition to any other notice period specified within this agreement). (iv) In the event that the contractor/service provider is not prepared to offer the employee employment in terms of sub clause (ii) above, or offers employment on lesser terms and conditions and/or without recognition of the employee's service, the employee will receive one month’s notice of termination (which is not in addition to any other notice period specified in this agreement) and redundancy compensation under this clause.