New South Wales Consolidated Acts

FREIGHT RAIL CORPORATION (SALE) ACT 2001 - SECT 42

42 Transfer of staff (sale method 1 or 3)

(1) When the sale of FreightCorp is under Part 3 (Sale method 1-direct transfer of undertaking to purchaser), the employees of FreightCorp immediately before the sale date are transferred on the sale date to the employment of FreightCorp’s purchaser and FreightCorp’s purchaser is their "new employer" for the purposes of this section.

(2) When the sale of FreightCorp is under Part 5 (Sale method 3-transfer of undertaking to company and sale of company to purchaser), the employees of FreightCorp immediately before the sale date are transferred to the employment of the sale company and the sale company is their "new employer" for the purposes of this section.

(3) On the transfer of an employee’s employment under this section the following provisions apply:

(a) the employee ceases to be an employee of FreightCorp and becomes an employee of the new employer on the same terms and conditions of employment as applied to the employee immediately before the transfer of employment, and those terms and conditions are to continue to have effect until varied either by agreement or otherwise in accordance with law,

(b) the continuity of the employee’s contract of employment is taken not to have been broken by the transfer of employment, and service of the employee with FreightCorp (including service that is taken to be service with FreightCorp) is taken for all purposes to be service with the new employer,

(c) without limiting paragraph (b), the employee retains any rights to sick leave, annual leave or long service leave accrued or accruing immediately before the transfer (except accrued leave for which the employee has, on ceasing to be an employee of FreightCorp, been paid the money value in pursuance of any other entitlement of the employee),

(d) the employee is not entitled to receive any payment or other benefit (including in the nature of severance pay or redundancy compensation) merely because the employee ceased to be an employee of FreightCorp as a result of the transfer of employment.

(4) Nothing in relevant industrial laws prevents payment of the monetary value of annual leave or long service leave if the payment is in lieu of an entitlement to that leave accrued by a person as an employee of FreightCorp before the transfer of the employee’s employment under this section and the payment is made in connection with the sale of FreightCorp. The Industrial Relations Act 1996 , the Long Service Leave Act 1955 and the Annual Holidays Act 1944 are "relevant industrial laws".

(5) In this section:
"sale date" means the date notified by the Treasurer by notice published in the Gazette as the sale date for the purposes of this section.

Sale date: 21.2.2002-see Gazette No 47 of 20.2.2002, p 899.

Note: When the sale of FreightCorp is under Part 4 (Sale method 2-conversion to company and sale of company to purchaser), no provision for the transfer of staff is required because the sale company to which FreightCorp is converted is the same legal entity as FreightCorp, and existing staff simply continue as staff of the same entity.