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
Issues covered:

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 (ELI) provisions of the TUPE Regulations 2006. Regulation 11 of TUPE imposes for the first time,

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

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

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