When you transfer employees out of your business, you must provide certain information about the employees who are transferring to the new employer. This is known as employee liability information.
The aim of this information is to give the new employer time to understand their obligations towards the transferred employees.
You must provide all information in writing. This can be as electronic files as long as the new employer can access the information.
If there is not much information to pass on, eg because only a few employees are transferring, you can provide the information by telephone. Consider asking the new employer which method they would prefer.
You can provide the information in stages. However, you must have given all the information before - ideally at least two weeks before - the completion of the transfer. You can also provide the information via a third party if you wish.
You can't agree with the new employer not to supply this information.
If you don't provide employee liability information, the new employer can make a complaint to an industrial tribunal. This could lead to a compensatory award for any loss the new employer incurs due to not having the information. Compensation is usually at least £500 per employee affected.
The information you must provide
You must provide:
- the names and ages of the employees who will transfer
- their statements of employment particulars
- details of any collective agreements that apply
- details of any formal disciplinary action taken in the past two years to which the statutory disciplinary and dismissal procedures apply
- details of any employee grievances raised in the past two years to which the LRA Code of Practice on Discipline and Grievance Procedures applies
- instances of any legal actions against you in the past two years by the transferring employees and any potential legal actions
If any of this information changes before the transfer is complete, you must provide the changes in writing to the new employer.