Employee Rights When an Undertaking is Transferred in Singapore

Under the Act, where a business or part thereof is transferred from the transferor to the transferee, Section 18A automatically operates to novate the contracts of employment of all of the EA Employees to the transferee. Section 18A applies where there is a sale of business on a going concern basis, and not where there is a sale of assets. The distinction between the two is sometimes one of degree, but in most cases, it will be clear as a matter of law whether a business sale, rather than an asset sale, is involved.

The Act specifically provides that there will be an automatic transfer with no break in the continuity of employment and the terms and conditions of service of the EA Employees transferred shall be the same as those enjoyed by them immediately prior to the transfer.

For more information, please contact L&E Global.
This information was contributed by Clasis LLC in association with Clyde & Co.
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