Corporate joint ventures—employment issues
Produced in partnership with Paula Rome of Shoosmiths
Corporate joint ventures—employment issues

The following Corporate practice note produced in partnership with Paula Rome of Shoosmiths provides comprehensive and up to date legal information covering:

  • Corporate joint ventures—employment issues
  • Formation of the joint venture entity
  • A relevant transfer under TUPE
  • Secondment to the JV entity
  • Continuity of employment and associated companies
  • TUPE on entry into a JV
  • Collective agreements and trade union recognition
  • TUPE and pensions
  • TUPE obligation to inform and consult
  • Employee liability information (ELI)
  • More...

Formation of the joint venture entity

This Practice Note outlines the employment issues that require consideration when setting up, running and ending a joint venture.

A number of the employment issues on the set up of a joint venture (JV) arrangement will depend upon the intentions behind the JV. While it is possible for a JV to be set up by way of any number of differing methods, in relation to the effect on employees, the key issue will be whether their work can be seen as transferring from their existing employer to the new JV under the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE 2006). For further information, see Practice Note: Preliminary issues (joint ventures)—overview.

If the JV is a completely new undertaking, set up for a new purpose, such a transfer is highly unlikely. This is because, if the JV is set up for a totally new undertaking, then the work of the employing parties coming together to form the JV will not transfer to the JV. If the JV is a new arrangement, as opposed to a move of existing work from one organisation to another, then the effect on employees (at least in relation to TUPE transfers) is minimised.

It may, however, still be the case that existing employees are seconded into the JV entity if they have key skills

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