Employment law manual updated to reflect recent TUPE case law
TUPE can present various challenges for employers, for example where it is unclear whether or not there is a relevant transfer for the TUPE legislation to apply, or whether or not transferring employees' terms and conditions can be varied. To help employers understand this technical area, we have updated the TUPE section of the Employment law manual to include information on three recent cases relating to: the extended definition of a TUPE transfer; the effect of a relevant transfer on contracts of employment; variations to transferring employees' terms and conditions; and the dismissal of transferring employees for economic, technical or organisational (ETO) reasons.
We also provide an update on the recent changes introduced by HM Revenue and Customs (HMRC) with respect to national minimum wage liabilities in the context of a TUPE transfer.
- Sigüenza v Ayuntamiento de Valladolid and others [2018] IRLR 1056 ECJ - the European Court of Justice (ECJ) was asked to consider whether or not a temporary cessation in activities of almost five months precluded the possibility of a relevant transfer.
- Nicholls and another v London Borough of Croydon and others [2018] IRLR 988 EAT; Hacker and others v London Borough of Croydon and others EAT/004/18 - the Employment Appeal Tribunal was asked to consider the wording in reg.4(1) of the TUPE Regulations 2006 in a case where the employees were offered employment under a staff transfer scheme.
- Tabberer and others v Mears Ltd and others EAT/0064/17 - the issue was whether or not the transferee's removal of a contractual entitlement to a travel time allowance amounted to a variation connected to a TUPE transfer.
- Sigüenza v Ayuntamiento de Valladolid and others [2018] IRLR 1056 ECJ - the ECJ also had to decide in this case whether or not the dismissal of employees, well before the date of the transfer, was a dismissal for an ETO reason.
- National minimum wage liabilities - HMRC has introduced changes relating to national minimum wage liabilities in the context of a TUPE transfer, effective from 2 July 2018.
