Insourcing and outsoursing / Transfer of undertaking
Businesses are opting ever more often to outsource part of their activities to specialist parties. Take for example the outsourcing of cleaning to a large cleaning organisation. The opposite variant is also relatively common. In particular in the IT sector, insourcing is a regular occurrence.
Insourcing and outsourcing processes bring with them a variety of issues relating to employment law. Depending on the facts and circumstances, for example it will have to be determined whether the Transition of Undertakings Act applies. It is also relevant whether employees and/or assets are also transferred the insourcing or outsourcing party. Insourcing and outsourcing processes also have far-reaching consequences for the affected employees. In the case of a transfer of undertaking, employees will indeed be transferred to the new employer. If this is not the case, a series of dismissals will probably have to be initiated. Employees’ organisations are often involved in outsourcing processes, and collective labour agreements (CAOs) contain specific rules on how these processes have to be implemented.
The attorneys in the Employment Law practice group have experience with both national and international insourcing and outsourcing projects. We regularly sit at the negotiating table with employees’ organisations, and are experienced in preparing insourcing and outsourcing contracts. We are also fully up to date on the various collective labour agreements and sector-specific settlements.