Consequences - Rights, liabilities and consultation

Key Points

The consequences of a ‘relevant transfer’ under TUPE are as follows:

  • Employees employed by the transferor (A) automatically become employees of transferee (B), unless they objects to this transfer [“Employment transfers”];
  • Following such automatic transfer of employment, the terms and conditions of the employees contracts remain the same (with the transferee, B) as they were previously (with the transferor, A) and the transferee (B) inherits all rights, powers, duties and liabilities in connection with these employment contracts  [“Rights and Liabilities”];
  • Dismissal of these employees for the sole or principal reason of the transfer is automatically unfair unless it was because of an ‘economic technical or organisational reason entailing changes in the workforce’ [“Automatically Unfair Dismissal”]
  • Likewise the employee’s terms cannot be simply varied (with any such variations being void unless the change was because of an ‘economic technical or organisational reason entailing changes in the workforce’) [“Variation of Terms”];
  • The transferor will be required to supply information to the transferee about affected employees and the transferor may have to consult these employees [“Consultation” and “Employee Information”].
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