TUPE Update from Dr John McMullen July 2020

Posted in : TUPE Updates on 21 July 2020
Dr John McMullen
Spencer West LLP
Issues covered: TUPE; Enhanced Benefits; Void; EU Abuse of Law Principle

Introduction

This month we report on a case where senior employees of a transferor deliberately enhanced the benefits and conditions with a view to passing them on to a transferee. How often has that happened to you, or a client transferee? Well, a recent UK EAT decision suggests the transferring employer/employee might not be able to get away with it.

The Ferguson case

Ferguson v Astrea Asset Management Ltd UKEAT/0139/19 is massively important. The EAT has held that when directors/employees improved their contractual benefits in view of a pending transfer, these variations were either void or fell foul of the EU abuse of law principle.

Reg 4(4) of TUPE, properly interpreted in a “broad

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This article is correct at 21/07/2020
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.

Dr John McMullen
Spencer West LLP

The main content of this article was provided by Dr John McMullen. Contact telephone number is 07769299610 or email drjohn.mcmullen@spencer-west.com

View all articles by Dr John McMullen