header-logo header-logo

17 February 2021 / John McMullen
Issue: 7921 / Categories: Features , Employment , TUPE
printer mail-detail

Surviving the TUPE transfer

39785
John McMullen provides an update on TUPE in relation to restrictive covenants
  • TUPE and restrictive covenants: the background.
  • The P14 Medical case: covenants, novation and liability.

In the recent England and Wales High Court case of P14 Medical Ltd v Mahon [2020] EWHC 1823 Mr Justice Cavanagh expressed the view that it is beyond doubt that a restrictive covenant in a transferring employee’s employment contract can transfer under the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE). In this case, a TUPE transfer occurred. Mr Mahon was a transferring employee. After the transfer, Mr Mahon resigned from the transferee, P14 Medical, to join a competitor of the business. But Mr Mahon’s transferred employment contract had restrictions which forbade that. Could P14 Medical sue to enforce those restrictions? In principle, yes, said Cavanagh J. As the effect of TUPE is that the contracts of employment of all employees in the part transferred are automatically transferred, by operation of law, from the transferor to the transferee, and the

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Bell Yard Kysen—Liz Giles

Bell Yard Kysen—Liz Giles

Bell Yard Kysen appoints senior legal PR and ex-government communications adviser, Liz Giles

Clarke Willmott—Lee Edwards

Clarke Willmott—Lee Edwards

Clarke Willmott boosts Southampton commercial property team with addition of partner Lee Edwards

Lime Solicitors—four promotions

Lime Solicitors—four promotions

Lime Solicitors announces four promotions

NEWS
The Attorney General, Ellie Reeves KC MP, and Solicitor General, Andy Slaughter KC MP, marked the 25th anniversary of Pro Bono Week by joining lawyers, charities, students and parliamentarians at events celebrating voluntary legal work
Possession claims are entering a new digital era, with procedural traps awaiting practitioners who assume familiar rules still govern every step
Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
Should a conviction stand when a later ruling reveals that the law underpinning it was wrong? The answer exposes a clash between finality and justice
The Environment Agency can prosecute offences beyond environmental legislation where proceedings support its statutory functions, the Divisional Court has confirmed
back-to-top-scroll