Commonwealth Consolidated Acts

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FAIR WORK ACT 2009 - SECT 311

When does a transfer of business occur

Meanings of transfer of business , old employer , new employer and transferring work

  (1)   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 as described in any of subsections   (3) to (6).

Meaning of transferring employee

  (2)   An employee in relation to whom the requirements in paragraphs   (1)(a), (b) and (c) are satisfied is a transferring employee in relation to the transfer of business.

Transfer of assets from old employer to new employer

  (3)   There is a connection between the old employer and the new employer if, in accordance with an arrangement between:

  (a)   the old employer or an associated entity of the old employer; and

  (b)   the new employer or an associated entity of the new employer;

the new employer, or the associated entity of the new employer, owns or has the beneficial use of some or all of the assets (whether tangible or intangible):

  (c)   that the old employer, or the associated entity of the old employer, owned or had the beneficial use of; and

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

Old employer outsources work to new employer

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

New employer ceases to outsource work to old employer

  (5)   There is a connection between the old employer and the new employer if:

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

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

New employer is associated entity of old employer

  (6)   There is a connection between the old employer and the new employer if the new employer is an associated entity of the old employer when the transferring employee becomes employed by the new employer.


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