We bought a business earlier this year and TUPE applied to the deal. One of the employees we inherited has just issued a grievance that he is owed thousands of pounds of commission that the old owner did not pay him. The old owner never told us about this. Do we have any comeback?

Posted in : First Tuesday Q&A NI on 2 June 2015
Emma-Jane Flannery
Arthur Cox

Firstly, barring certain insolvency situations, the position under TUPE is that all liabilities transfer from old owner to new owner. So, harsh as it seems, you are likely to be on the hook even though this is not your fault.

I would then check the terms of any sale and purchase agreement. Very often such agreements will contain clauses making clear that the old employer is responsible for all accrued salaries, bonuses, holiday pay etc up to the point of transfer and the new employer thereafter. Assuming that doesn’t rescue you, you might be able to rely on the Employee Liability Information

Already a subscriber?

Click here to login and access the full article.

Don't miss out, start your free trial today!

Are you fully aware of the benefits of Legal-Island's Employment Law Update Service? We help hundreds of people like you understand how the latest changes in employment law impact on your business.

Help understand the ramifications of each important case from NI, GB and Europe

24/7 access to all the content in the Legal Island Vault for research case law and HR issues

Ensure your organisation’s policies and procedures are fully compliant with NI law

Receive free preliminary advice on workplace issues from Maxine Orr, Partner at Worthingtons Solicitors

Already a subscriber, now or Start my free trial today

Back to Q&A's This article is correct at 02/09/2015
Disclaimer:

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Emma-Jane Flannery
Arthur Cox

The main content of this article was provided by Emma-Jane Flannery. Contact telephone number is 028 9023 0007 or email Emma-Jane.Flannery@arthurcox.com

View all articles by Emma-Jane Flannery