Transfer outside the UK

Case 1: The facts

Manufacturing company Newell Ltd sold part of its business to Holis Metal Industrial Ltd, which is based in Israel. Without any consultation, 107 staff were told they could either move to Israel or be made redundant; all were made redundant.

The GMB general union brought claims against both Newell and Holis for their failure to consult under both TUPE and the collective redundancy laws. Holis argued that the TUPE regulations do not apply to a transfer outside the UK. An employment tribunal chair disagreed, saying that it is the location of the transferor that determines whether TUPE applies.

The ruling

The Employment Appeal Tribunal upheld the tribunal’s decision, holding that TUPE can potentially apply to a transfer from the UK to a company outside the European Union. According to Regulation 3 of the 2006 TUPE regulations, the legislation applies to a transfer of a business “situated immediately before the transfer in the UK”.