Transfer of Undertakings in Ireland: Employer Obligations Explained

A transfer of undertakings in Ireland happens when a business, or part of one, moves to a new employer and the people working in it move with it. For the new employer, the main point is that the employees come across with their existing terms and their service intact. For the old employer, there are duties to inform and consult before the transfer. This guide summarises the European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003 (S.I. No. 131 of 2003) as presented on the Irish Statute Book, plus guidance from Citizens Information and the Workplace Relations Commission (WRC). If a transfer could lead to job losses, read it alongside our guide to redundancy for Irish employers. This is general information, not legal advice.

What counts as a transfer

Citizens Information (page last edited 10 August 2026) says a transfer occurs when employees move to a new employer as part of a legal merger or the sale of a business, whether the whole business or only the part where they work. It says the entity running the business must change, the new employer must continue the business's previous economic activities, and the business must transfer as a going concern. The Regulations as published on the Statute Book define a transfer as the transfer of "an economic entity which retains its identity", and an economic entity as an organised grouping of resources pursuing an economic activity, whether or not for profit.

The Statute Book text says the Regulations cover public and private undertakings engaged in economic activities whether or not they operate for gain, and that reorganising public administrative authorities is not a transfer. The WRC page adds that they apply to employees under contracts of employment (including apprentices) and certain public office holders. The WRC booklet says that for agency workers, the employment agency or the client that pays the wages may count as the employer. The booklet carries no issue date and refers to the Regulations coming into operation on 11 April 2003.

What passes to the new employer

According to the Statute Book text of the Regulations (Reg. 4), the transferor's rights and obligations under existing employment contracts pass to the transferee. Citizens Information puts it in practical terms: the new employer must take on existing staff on the same terms and conditions, with pensions as the main exception, and contract terms and obligations transfer automatically.

• Collective agreements: terms continue to apply until the agreement expires or is replaced.
• Continuity of service: the WRC page says accrued service with the original employer is deemed to have been with the new employer, and Citizens Information says service is not broken for redundancy purposes.
• Agreements to opt out: the Statute Book text says clauses that exclude or limit the Regulations are void, while more favourable terms are permitted.

Our suggestion: use the due diligence period to collect every contract, written statement, collective agreement and record of accrued service, so that the new employer knows exactly which terms it is inheriting. The Regulations do not tell you how to organise that. Our guide to written statements of terms explains what employees should already have on file.

Pensions

Citizens Information says pension rights for old age, invalidity or survivor benefits generally do not transfer, so the new employer need not match previous contributions. It adds that entitlements built up before the transfer must be protected, and that pension rules are complex enough to need trustee contact or legal advice. The WRC page says that occupational schemes covered by the Pensions Act 1990 remain protected by that Act, and that for other schemes the new employer must protect rights giving entitlement to old-age benefits, including survivors' benefits. Pensions are the area where we would take professional advice first, as neither page goes into scheme-level detail.

Dismissals around a transfer

Under the Statute Book text, a transfer alone cannot justify a dismissal. Dismissals for economic, technical or organisational reasons involving changes in the workforce are not prohibited. Citizens Information says whether such reasons are justified depends on the facts of each case. It also says that if the employee leaves because the transfer substantially worsens their working conditions, the employer is treated as responsible for the termination. The WRC booklet says an employee cannot get relief for the same dismissal under both the Regulations and the Unfair Dismissals Acts. For the wider picture on dismissal claims, see our unfair dismissal guide; for what a lawful redundancy looks like, use the redundancy guide linked above.

Information and consultation

This is the part employers most often get wrong. The Statute Book text, the WRC page and Citizens Information agree on the main points:

• Both the transferor and the transferee must inform employee representatives of the date or proposed date, the reasons, and the legal, economic and social implications.
• Information should be given, where reasonably practicable, at least 30 days before the transfer, and in any case in good time.
• Where measures affecting employees are envisaged, they must be discussed with representatives with a view to reaching agreement.
• Where no representatives exist, employees must have the chance to elect them, and if none exist through no fault of the employees, each employee must be informed in writing.
• The duties apply even where another undertaking controlling the employer made the decision.

Citizens Information also refers to the Employees (Provision of Information and Consultation) Act 2006, and says employers with 50 or more employees must consult the union or elected representatives on decisions likely to substantially change work organisation. Keep the two regimes separate in your plan. Our suggestion: record when each notice went out, to whom, and what was discussed, because the 30-day point is a question of dates.

When the Regulations do not apply

Citizens Information says compulsory (involuntary) liquidation does not count as a transfer, and that a change of service contractor, such as in cleaning, catering or security, generally is not a transfer. The Statute Book text disapplies Regulations 3 and 4 where the transferor is the subject of bankruptcy or insolvency proceedings, but not where the main reason for the proceedings is the evasion of an employer's obligations under the Regulations. Because these points depend on the facts, a borderline case, such as a contract moving between providers, needs specific advice before anyone assumes the Regulations do or do not apply.

Complaints

Citizens Information says a complaint to the WRC can be made within 6 months if an employee was dismissed because of the transfer, or if the employer failed to consult the employee or union, with an extension of up to a further 6 months for reasonable cause. Pension complaints go to the Pensions Authority where the scheme is covered by the Pensions Acts, and to the WRC otherwise. The Statute Book text and the WRC booklet describe an older route to a rights commissioner and the Employment Appeals Tribunal. Since Citizens Information now points to the WRC, we rely on that and have not repeated the compensation caps from the older text.

A checklist for Dublin employers

• Decide early whether the deal is a transfer, and take advice if it is borderline.
• List all employees assigned to the transferring business, including apprentices and agency workers where relevant.
• Plan information and consultation on a timeline that works back from the 30-day point.
• Take pension advice separately.
• Avoid dismissals framed as a response to the transfer itself.

Learnsignal's offices are off Baggot Street in Dublin, and we offer in-person training from there. For current details, see our CPD pages.

Frequently asked questions

Do employees transfer automatically?

According to Citizens Information, contract terms and the employer's obligations transfer automatically, and the new employer must take on existing staff on the same terms, with pensions as the main exception.

How much notice must employees get?

The sources say information should be given where reasonably practicable at least 30 days before the transfer, and in any case in good time.

Can an employer dismiss staff because of a transfer?

The Regulations say a transfer alone cannot justify dismissal. Dismissals for economic, technical or organisational reasons are not prohibited, but depend on the facts.

Is a change of cleaning or security contractor a transfer?

Citizens Information says a change of service contractor generally is not a transfer. Borderline cases need advice.

Check the current text of the Regulations and the WRC and Citizens Information pages before relying on this summary.