Q&As

What is the best way to reach an effective settlement of all claims that may arise out of TUPE?

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Published on LexisPSL on 05/10/2016

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • What is the best way to reach an effective settlement of all claims that may arise out of TUPE?
  • Identify the relevant claims
  • Claims which cannot be settled using a settlement agreement—use Acas
  • Weighing up the best way to settle

What is the best way to reach an effective settlement of all claims that may arise out of TUPE?

The approach to this will depend on:

  1. whether the relevant party is the employee, transferor or transferee?

  2. the type of TUPE-related claim or claims they want to settle

  3. who the claim has been, or would be, made by, bearing in mind some claims can be brought by employee representatives or the transferee (see below)

  4. whether pre-claim Acas conciliation has already started

  5. what financial and time resources are available for the purposes of settlement

  6. how complex the settlement terms are, is it a relatively simple settlement or are there extensive terms?

  7. whether the employee is already legally represented

  8. the point at which settlement is being considered, because if it is at the hearing stage the claims could be settled using a consent order, see below

For further information on this issue generally, see Practice Note: TUPE—contracting out and settling claims.

TUPE-related claims can be settled in one of two ways, depending on the type of claim:

  1. by using Acas to reach a binding settlement; or

  2. by the parties entering into a settlement agreement

However, not all types of TUPE-related claim can be validly settled by a settlement agreement so, depending on the nature of the claim

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