Want to talk to an expert employment law solicitor?

You'll receive a callback from a specialist within an hour

In the latest post in our series on TUPE, we take a further look at the automatic transfer principle that applies to relevant transfers in a TUPE context. As we explored in a previous post, the automatic transfer principle states that upon a relevant transfer (defined in this post) all of the transferor’s (the business being bought) rights, powers, duties, and liabilities under or in connection with the employees’ contracts of service transfer over to the transferee (the business doing the buying).

This post will examine what rights, powers, duties and liabilities transfer upon a relevant transfer and look at a couple of examples to illustrate the application of particular facts to the law.

So, what is included within the scope of rights, powers, duties and liabilities? The post below takes a (limited) look at what does and does not transfers.

  1. Employment contracts (as above)
  2. Normal retirement age
  3. Unfair dismissal rights
  4. Accrued liabilities

Employment contracts

The definition and consequent scope of the “rights, power, duties and liabilities” that transfer from the transferor to the transferee in any given situation under an employment contract is not certain. It depends on the existing employment relationships that subsist at the time of the TUPE transfer. The scope of these rights, powers, duties, and liabilities isn’t entirely defined by the nature of the particular contracts that the transferor has entered in to with parties but can include non-contractual obligations and rights.

However, all rights and benefits (such as holiday pay, a company car, wages, maternity schemes, redundancy schemes, bonuses etc.) will generally transfer.

Normal retirement age

Although, as above, generally all rights and liabilities relating to the contract of employment transfer, the rights of an employee relating to their retirement age at the transferor will not.

Unfair dismissal rights

The employee’s right to claim unfair dismissal is preserved when a relevant transfer takes place under TUPE. The right can extend to automatic unfair dismissal in some circumstances (for example, if the reason for the dismissal is because of or connected to the relevant transfer).

Liability for the employee’s right to claim unfair dismissal generally passes to the transferee upon a relevant TUPE transfer. However, as above, the transferor may in some circumstances remain liable for unfair dismissal

Accrued liabilities

The transferee should be aware of the possibility of accrued (and non-transparent) liabilities passing from the transferor to the transferee. These accrued liabilities include acts and omissions by employees of the transferor that could constitute claims for discrimination, constructive dismissal, personal injury, and/or debts owing to employees.

Practical tips

For employees:

  • Inform yourselves of your contractual rights and liabilities. Make sure that these are honoured upon the relevant TUPE transfer
  • Be aware that your right to claim unfair dismissal (as well as other claims, depending on the facts) are preserved
  • Your retirement age may vary upon transfer to the transferee, depending upon the transferee’s retirement policy

For employers (transferees):

  • Ensure that thorough and accurate due diligence is carried out on the transferee
  • Make sure that the appropriate warranties and indemnities are in place upon the transfer

About Chris Hadrill

Chris is a specialist employment lawyer at Redmans. He specialises in contentious and non-contentious employment matters, including breach of contract claims, compromise agreements and Employment Tribunal cases. He writes on employment law matters on a variety of websites, including Direct 2 Lawyers, Lawontheweb.co.uk, LegalVoice, the Justice Gap and his own blog. Contact Chris by emailing him at chadrill@redmans.co.uk

Tagged with →  

Want to talk to an expert employment law solicitor?

You'll receive a callback from a specialist within an hour

Share →

Leave a Reply

Your email address will not be published. Required fields are marked *

 

Our awards

Request a callback

    Your first name (required)

    Your last name (required)

    Your email (required)

    Your telephone number (required)

    Brief details of your enquiry

    Contact us

    Please feel free to discuss your own position and concerns. Contact your nearest office on:

    T: 020 3397 3603
    E: enquiries@redmans.co.uk
    W: www.redmans.co.uk

    Testimonials

    4.78 Average

    269 Reviews

    Sue W

    The people at Redmans talk to you with respect and make you feel like they take your situation personal. They clearly care and are extremely professional. I have recommended Redmans to many people.

    Posted 3 days ago

    Anonymous

    Redmans Solicitors were consistently prompt, efficient and professional from the start of my reaching out to them for support in relation to contentious negotiations of an employment matter that continued for almost two months resulting in a positive settlement agreement. Chris Hadrill was diligent, thorough, empathetic and objective in his advice and guidance, showing deep and broad knowledge of the law and legal processes plus extensive practical experience in handling complex matters, resulting in clear and pragmatic advice in ambiguous circumstances that resulted in a very good outcome. I fully recommend Chris Hadrill and Redmans Solicitors! I have made this review anonymous purely because of the confidentiality obligations in the settlement agreement concluded.

    Posted 1 month ago

    Michelle W

    Redmans solicitors provided legal support and advice for a settlement agreement. Excellent customer service, very professional. The senior associate solicitor kept me updated throughout the process, showed empathy and the agreement was signed-off / completed within the agreed timeline.

    Posted 1 month ago

    Mark W

    Redmans Solicitors were extremely professional and helpful! Chris Hadrill handled my case and was an amazing help! His guidance, advice and understanding to my redundancy settlement were always clear, concise and very helpful and I am very grateful to him, and glad I found Redmans to help with my settlement. I highly recommend them!

    Posted 1 month ago

    Alison M

    Very happy with the advice I received

    Posted 1 month ago

    Margaret A

    I found everything about the company to be extremely professional and efficient. During my initial contact with Chris, he listened well and was reassuring, so I felt confident that my case would be well handled. Caroline was excellent at explaining all the legal points and answering my questions, as well as being very supportive and understanding throughout the process. I would definitely recommend this company.

    Posted 1 month ago

    Sanja K

    Very efficient and professional service.

    Posted 1 month ago

    Anonymous

    I found the advice I was given by Redmans Solicitors to be clear and useful and found the solicitor on my case to be both knowledgeable and approachable.

    Posted 1 month ago

    Karen T

    Great service. Thank you.

    Posted 1 month ago

    Anonymous

    Excellent service from Chris & Mel Chin. The best outcome was achieved from the redundancy process. They were extremely thorough, listened carefully and acted swiftly on my behalf. I highly recommend Redmans Solicitors

    Posted 1 month ago

    Shanine M

    Excellent service, thank you so much!

    Posted 1 month ago

    Anonymous

    I found Caroline and Chris very Helpful and provided excellent service. Caroline especially provided great legal advice and made me feel at ease with the whole process. I would highly recommend them. Thank you!

    Posted 1 month ago

    Gayle B

    Excellent company very professional would definitely recommend

    Posted 1 month ago

    Alex K

    Redmans provided an excellent service, timely and effective. Will definitely recommend.

    Posted 1 month ago

    Anonymous

    Great job done on my employment law

    Posted 1 month ago

    Dominica S

    Caroline & Chris were very prompt and efficient.Very happy with the service and will definitely recommend Redmans Solicitor to everyone !

    Posted 1 month ago

    Sandra K

    If you are looking for a group of solicitors who are Professional, Caring and on point, then look no futher than Redmans. I was literally hand held through out my case. Can not find fault with this company, very happy with the result and the service i received. Would highly recommend Redmans.

    Posted 1 month ago

    Anonymous

    I found dealing with Redmans a pleasure. I got to speak to someone quickly, the advice was profferred promplty and the service was not 'pushy'. In addition, the administration was excellent. What more could you ask for?

    Posted 1 month ago

    ALISDAIR L

    Redmans did a brilliant job regarding my redundancy agreement. I miss read an extra charge which wasnt the case so doing a new review to clarify. I would recommend Redmans for any employment law issues you may have.

    Posted 2 months ago

    Christos G

    Great legal advice and quick correspondence. Very supportive and helpful through the entire process. Thank you Redmans!

    Posted 2 months ago

    Anonymous

    Chris Hadrill advised me on a redundancy settlement agreement. He was very responsive, easy to deal with and gave me good advice at a stressful time.

    Posted 2 months ago