Transfer law

The key developments

* Where employees are transferred under TUPE employers cannot make changes to their contracts if the changes arise solely because of the transfer (see case 1).

* An employee who is temporarily transferred will not necessarily be identified with the new work in the event of a TUPE transfer (see case 2).

* If a tribunal finds that there has been a failure to consult it must make a declaration to that effect, but it does not have to make a compensatory award (see case 3).

The basic legal rules

Under the transfer regulations (TUPE) when a business is transferred from one employer to another 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 something (a stable identifiable entity). Under TUPE most legal liabilities, for example any 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.