18Arrangements for employees on formation of company

18 Arrangements for employees on formation of company

(1)  If the business of a prescribed Government Business Enterprise is transferred to a company under section 17 , the Treasurer may, by order provided to that Government Business Enterprise –

(a) transfer to the company the employment of a person who, immediately before the transfer day, was employed by that Government Business Enterprise or under the State Service Act 2000 for the purposes of that business; or

(b) terminate on any conditions the Treasurer considers appropriate the employment of a person who, immediately before the transfer day, was employed by that Government Business Enterprise for the purposes of that business.

(2)  If a person employed under the State Service Act 2000 for the purposes of a relevant prescribed Government Business Enterprise does not have his or her employment transferred in accordance with subsection (1)(a) , that person remains in employment under and subject to the State Service Act 2000 .

(3)  In terminating the employment of a person under subsection (1) , the Treasurer is to do so subject to, and in accordance with, any relevant contract, award or agreement.

(4)  On receipt of an order under subsection (1) , the relevant prescribed Government Business Enterprise is to give to each person whose employment is transferred or terminated by the order written notice of that transfer or termination.

(5)  On the transfer day, or on the day specified in the order under subsection (1) as the day on which the employment of a person is transferred –

(a) if the order transfers the employment to a company, that person becomes an employee of the company and the company becomes the employer of that person; and

(b) that person ceases –

(i) to be an employee of the relevant prescribed Government Business Enterprise; or