How to deal with the provision of employee benefits following a TUPE transfer
Author: James Green
Summary
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- When dealing with an incoming transfer of staff under TUPE, identify the terms and conditions of transferring employees.
- Analyse employees' benefits and determine whether they are contractual, discretionary or a combination of the two.
- Identify those contractual benefits that must be provided following the transfer and make arrangements to continue to provide those benefits in good time before the transfer.
- Identify any discretionary benefits that need not be provided following the transfer.
- Identify any benefits that the business cannot provide and consider whether to amend or withdraw them or to provide equivalent benefits.
- Communicate details of any proposals to amend or withdraw benefit provision to the transferor as part of the obligation to identify measures for the purpose of TUPE information and consultation.
- Identify any commercial and legal risks that may arise from proposals to amend or withdraw particular benefits.
- Try to negotiate adequate protection through warranties and indemnities in any commercial documentation.
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