TUPE—issues arising in property transactions

Produced in partnership with Jenny Andrews of Herbert Smith Freehills
Practice notes

TUPE—issues arising in property transactions

Produced in partnership with Jenny Andrews of Herbert Smith Freehills

Practice notes

This Practice Note examines the circumstances in which the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE 2006) may apply in the context of property transactions and considers the impact on both employers (for example, landlords, Tenants, managing Agents and other third party contractors), as well as on employees.

Overview

Examples of different property-related situations and transactions that may trigger the application of TUPE 2006 include:

  1. the sale of commercial freehold or leasehold property subject to existing leases (eg a shopping centre, hotel or serviced office block)

  2. the termination of a property management agreement and the appointment of a new managing agent

  3. a change in the contractor providing services at a building (eg cleaning or security services)

  4. the termination of a lease and grant of a new lease to a new tenant, and

  5. the assignment, surrender or variation of a lease where the tenant takes some or all of the management responsibility

TUPE 2006, in its current form, has been in force since

Jenny Andrews
Jenny Andrews

Jenny has carved out a reputation for providing straightforward, solution-driven and commercial advice on a range of partnership and employment issues (including, on employment-related data protection issues). In addition to a full-service advisory practice, handling day-to-day employment and partnership queries (including on the appointment, retention and exit management of senior employees/partners), Jenny advises on the employment aspects of a broad spectrum of transactional matters, such as domestic and cross-border share and business acquisitions and disposals, outsourcings and real estate transactions. Her contentious experience includes handling litigation in both the Employment Tribunal and High Court, such as high value whistleblowing and discrimination claims and claims seeking injunctive relief (for example, relating to the enforcement of restrictive covenants and misuse of confidential information). Jenny advises clients across a range of sectors, with a specific focus on those within the professional and financial services sector (including for firms incorporating an LLP or partnership within their structure) and the energy sector. Jenny has a particular interest in and is regularly involved in advising clients on internal investigations in the financial services sector. Jenny was ranked as a "Next Generation Lawyer" by Legal500 in 2017, who commented that she is a "real rising star".

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Jurisdiction(s):
United Kingdom
Key definition:
Employer definition
What does Employer mean?

Also known as the client or developer. The person for whom the works are undertaken under the contract'>building contract by the contractor. Sometimes, but not necessarily, the employer is the owner of the site.

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