Restrictive Covenants and Transfers – do they still apply?
Published on: 26/11/2019
Article Authors The main content of this article was provided by the following authors.
Kiera Lee Partner, Mills Selig
Kiera Lee Partner, Mills Selig
Kiera lee

Kiera has over 20 years’ experience in employment law,  acting for employers in contentious and non-contentious matters. Her client list includes leading NI Companies and large employers.

Kiera’s experience covers day to day HR problems and complex restructuring issues. She has given advice on a restructure and redundancy programme involving more than 800 employees, defended multi claimant tribunal claims for unfair dismissal arising from TUPE transfers. She recently advised on the high-profile acquisition of Wrightbus and the sale of Novosco.

She also assists with strategic decisions, successfully managing the exit of senior executives including any contentious issues with shareholding and restrictive covenants.

What the legal press says about Kiera:

  • heads the department and handles contentious and non-contentious employment matters. Sources speak to her solid reputation and commend her commercial outlook, calling her a “business-focused employment lawyer.”
  • provides “an excellent level of service”
  • “has an excellent grasp of the commercial aspects of employment law.”
  • She is commercial, pragmatic and knows which battles to fight.
  • ...an excellent service in a timely manner
  • ...knowledgeable

Introduction ⚓︎

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 covenants will pass to the transferee (buyer). Although, on the face of it, the transferee

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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. This article is correct at 26/11/2019