What happens to employee(s) in the situation where a business sells one of its stores to a franchisee? Does the employee(s) of the business affected (i.e. the employee(s) who work in the store sold to the franchisee) transfer to the franchisee company?Posted in : First Tuesday Q&A NI on 1 March 2016
The TUPE Regulations may apply to this situation if the relevant criteria for there being a TUPE transfer are met (namely, whether there is a transfer of an economic entity which retains its identity post-transfer). In many cases the sale of a business to a franchisee for TUPE purposes will be no different to a typical business sale to a third party.
The 1991 EAT decision in LMC Drains Limited& Another v Waugh which was decided before the 2006 TUPE Regulations, is also of assistance. In this case, the EAT held that the grant or assignment of a franchise agreement to carry on drain
Already a subscriber?
Click here to login and access the full article.Log in now to read 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
Back to Q&A's This article is correct at 01/03/2016
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.