UK: TUPE – pre-transfer beneficial changes to terms are void

The EAT has ruled that a variation to an employment contract will be invalid where the sole or principal reason for the variation is the transfer, even if the change is to the employee’s benefit.  The ruling will be welcome news for clients and incoming contractors on a service provision change, as it will render … Read more

UK: first instance tribunal decision that ‘workers’ covered by TUPE

An employment tribunal has ruled that ‘workers’, ie those who are not employed or self-employed but work under a contract personally to do work, qualify for protection under the Transfer of Undertakings (Protection of Employment) Regulations 2006. TUPE implements the EU Acquired Rights Directive, which provides for the transfer of rights and obligations arising from … Read more

UK: HMRC update on national minimum wage liabilities following a TUPE transfer

HMRC has issued an update confirming that, with effect from 2 July 2018, where there has been a TUPE transfer of employees, all national minimum wage  liabilities, including the full penalty amount, will now be enforced against the transferee employer, including penalties triggered by pre-transfer arrears. This highlights the importance of transferees obtaining an indemnity … Read more

Updated HSF multi-jurisdictional guide to employee issues in business transfers

Employment law issues rarely determine the strategy for a multi-jurisdictional business acquisition, but they can certainly give rise to significant avoidable costs and delay if issues are not spotted in advance. In the Herbert Smith Freehills 2016 global survey, 57% of respondents cited employment regulations as one of the reasons a deal had failed to … Read more

UK: TUPE can apply to part of service split along functional lines

The EAT has confirmed that, where a service being provided by a transferor is split along functional lines, with two separate activities carried out by two organised groupings of employees, it is possible for there to be a service provision change of one of those functions to which TUPE will apply. Read more