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Transfer of undertakings: Accelerated pension rights not transferred on outsourcing

This report relates to 1 case(s)

Employees' rights under statute to accelerated pension benefits on redundancy did not transfer to a new employer by virtue of the Transfer of Undertakings Regulations, as the transferor had no contractual obligation to make those payments directly to the employees, holds the EAT in Frankling and others v BPS Public Sector Ltd [1999] IRLR 212. In any event, the provisions dealing with those rights constituted provisions of an occupational pension scheme relating to benefits for old age, notwithstanding acceleration because of redundancy, and so were excluded from the scope of the Regulations.