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Automatic substitution?

14 November 2019 / John McMullen
Issue: 7864 / Categories: Features , Employment , TUPE
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John McMullen provides an update on the automatic transfer principle & its effects
  • TUPE and the automatic substitution of the transferee for the transferor in the employment relationship.
  • The automatic transfer principle should put all potential transferees on notice that three processes at least are required.

TUPE regulations ensure that the employment contract of an employee employed by the transferor immediately before transfer and assigned to the organised grouping of resources or employees that is subject to the relevant transfer has the effect, after the transfer, as if originally made between the employee and the transferee (see box out).

Additionally, all of the transferor’s rights, powers, duties and liabilities under or in connection with an employment contract are transferred to a transferee, and any act or omission before the transfer is completed by or in relation to the transferor in respect of the contract of employment or a person assigned to that organised grouping of resources or employees is deemed to have been done by or in relation to the transferee.

The

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