Transfer law

This month's cases focus on the identification of employees and what amounts to a relevant transfer.

The key developments

* The identification of an employee with a transfer is dependent on where the employee is assigned to work, rather than where their contract states they should work (case 1).

* Continuation of the same activity can establish a TUPE transfer even where different equipment is used (case 2).

* The transfer of employees is not necessary for determining whether there is a TUPE transfer (case 3).

The basic legal rules

Under the transfer regulations (TUPE), when a business is transferred from one employer to another, the employees doing the work should also transfer on their existing terms and conditions. To come within TUPE, there has to be a relevant transfer of an activity that amounts to a "stable economic entity".

Under TUPE most legal liabilities (for example, outstanding legal cases being taken against the old employer) transfer to the new employer.

An employee covered by TUPE has the right to continued terms and conditions, including redundancy terms. Additionally, there is no time limit after which TUPE protection no longer applies. However, that does not mean that changes can never occur.