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INDUSTRIAL RELATIONS LEGISLATION AMENDMENT ACT 2021 (NO. 30 OF 2021) - SECT 87

87 .         Part II Division 3 inserted

                At the end of Part II insert:


Division 3 — Transfer of business

7D.         Terms used

                In this Division —

        connection between the old employer and the new employer has the meaning given in section 7G;

        new employer has the meaning given in section 7E;

        old employer has the meaning given in section 7E;

        transfer of business has the meaning given in section 7E;

        transferring employee has the meaning given in section 7F;

        transferring work has the meaning given in section 7E.

7E.         Transfer of business, old employer, new employer, transferring work

                There is a transfer of business from an employer (the old employer ) to another employer (the new employer ) if the following requirements are satisfied —

            (a)         the employment of an employee of the old employer has terminated;

            (b)         within 3 months after the termination, the employee becomes employed by the new employer;

            (c)         the work (the transferring work ) the employee performs for the new employer is the same, or substantially the same, as the work the employee performed for the old employer;

            (d)         there is a connection between the old employer and the new employer.

7F.         Transferring employee

                An employee in relation to whom the requirements in section 7E(a), (b) and (c) are satisfied is a transferring employee .

7G.         Connection between old employer and new employer

        (1)         There is a connection between the old employer and the new employer if, in accordance with an arrangement between them, the new employer owns or has the beneficial use of some or all of the assets (whether tangible or intangible) that —

            (a)         the old employer owned or had the beneficial use of; and

            (b)         relate to, or are used in connection with, the transferring work.

        (2)         There is a connection between the old employer and the new employer if, because the old employer has outsourced the transferring work to the new employer, the transferring work is performed by 1 or more transferring employees as employees of the new employer.

        (3)         There is a connection between the old employer and the new employer if —

            (a)         because the new employer had outsourced the transferring work to the old employer, the transferring work had been performed by 1 or more transferring employees, as employees of the old employer; and

            (b)         because the new employer has ceased to outsource the work to the old employer, the transferring work is performed by those transferring employees, as employees of the new employer.

        (4)         There is a connection between the old employer and the new employer if the new employer is a related body corporate of the old employer when the transferring employee becomes employed by the new employer.

7H.         Status of transferring employees on transfer of business

                For the purposes of this Act, on a transfer of business —

            (a)         a transferring employee’s employment before and after the transfer is taken to be a single period of continuous employment; and

            (b)         the new employer is taken to have been the transferring employee’s sole employer for the entire period.

7I.         Transfer of employment records

        (1)         In this section —

        employment records means employment records required to be kept by an employer under section 26(1).

        (2)         On the transfer of a business, the old employer must transfer copies of all transferring employees’ employment records to the new employer.

        (3)         A contravention of subsection (2) is not an offence but that subsection is a civil penalty provision for the purposes of the IR Act section 83E.

        (4)         In proceedings under the IR Act section 83E for a contravention of subsection (2), an industrial magistrate’s court may, as an alternative, determine that a contravention of section 26(1) or (2) has occurred.




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