Restrictive Covenants and Transfers – do they still apply?Posted in : Essential Guide to Employment Contracts on 26 November 2019
The Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”) typically applies to business asset sales, as opposed to share sales. The purpose of TUPE is to protect employees when the business they work for changes ownership. TUPE contains various provisions which preserve the contractual terms of transferring employees and protects them against any changes being made by the employer to whom they have transferred. Restrictive covenants, salary, holiday, bonus entitlement, for example, are all preserved on transfer. This article focuses on restrictive covenants following a TUPE transfer.
Impact of TUPE transfer
On a TUPE transfer, the benefit of restrictive
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