Ƶ

Transfer of rights and liabilities

Produced by Tolley in association with
Employment Tax
Guidance

Transfer of rights and liabilities

Produced by Tolley in association with
Employment Tax
Guidance
imgtext

Liabilities in relation to transferring employees

Following a TUPE transfer, the transferee acquires:

  1. all rights, powers, duties and liabilities under or in connection with the contracts of employment of transferring employees

  2. liability for all pre-transfer acts and omissions of or in relation to the transferor in respect of transferring employees or their contracts of employment

SI 2006/246, reg 4(2)

Most employment terms are protected by TUPE. Transferring employees retain continuity of service for determining eligibility to claim unfair dismissal, statutory redundancy payments etc. They also retain their existing terms and conditions, except those relating to old age, invalidity or survivors' benefits under occupational pension schemes.

In addition, the transferee inherits liability for all acts or omissions by the transferor (or an earlier employer) in relation to transferring employees, except for criminal liabilities (eg health and safety offences). These could include:

  1. personal injury claims

  2. discrimination claims

  3. arrears of wages

The transferee also inherits the right to claim

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™
Dr John McMullen
Dr John McMullen

Partner at Stone King LLP , Employment Tax


Dr John McMullen is a Partner at Stone King Solicitors LLP, United Kingdom, and a Visiting Professor of Law at Durham University. He has over 25 years of experience in employment law and is noted as being both a strategic thinker and leader in his field as well as being a practical hands-on lawyer. By peer acclaim he is one of the leading lawyers in the UK with national and international reputation.John is regarded as the leading expert in the UK on Transfer of Undertakings and he also has an international reputation in that field. He is the author of Business Transfers and Employee Rights, the leading work on transfers which also contains a chapter on transfer law and practice in Ireland along with his new book, Redundancy: Law and Practice. As well as being a writer and commentator on Mergers and Acquisitions and out-sourcing he advises the public, private and third sectors on the subject of staff transfers. This includes wide experience in mergers and acquisitions, out-sourcing, franchising and complex re-structuring.An all-round employment advisor, he is an editor of Harvey on Industrial Relations and Employment Law. He is an expert on the contract of employment and corporate governance in relation to employment issues.

Powered by
  • 17 Apr 2023 11:21

Popular Articles

Foreign exchange issues

Foreign exchange issuesOverview of foreign exchange provisionsForeign exchange (FX) movements are generally taxed following the rules applicable to the underlying income, expenditure, asset or liability on which they arise, broadly as follows:Capital assetsOn a realisation basis (ie on disposal)

14 Jul 2020 11:44 | Produced by Tolley Read more Read more

Payroll record keeping

Payroll record keepingUnder SI 2003/2682, reg 97, “...an employer must keep, for not less than 3 years after the end of the tax year to which they relate, all PAYE records which are not required to be sent to [HMRC]...”. Reasons for keeping the records include:•being able to calculate tax and

14 Jul 2020 12:52 | Produced by Tolley in association with Ian Holloway Read more Read more

Computation of corporation tax

Computation of corporation taxCompanies pay corporation tax on the taxable total profits (TTP) generated in a chargeable accounting period (CAP).To ascertain whether the entity is within the charge to corporation tax, see the Charge to corporation tax guidance note.For more information on the type

14 Jul 2020 11:16 | Produced by Tolley Read more Read more