The following Employment Tax guidance note Produced by Tolley in association with Dr John McMullen, Partner, Stone King LLP and Visiting Professor of Law, Durham University provides comprehensive and up to date tax information covering:
Following a TUPE transfer, the transferee acquires:
all rights, powers, duties and liabilities under or in connection with the contracts of employment of transferring employees
liability for all pre-transfer acts and omissions of or in relation to the transferor in respect of transferring employees or their contracts of employment
SI 2006/246, reg 4(2)
Most employment terms are protected by TUPE. Transferring employees retain continuity of service for determining eligibility to claim unfair dismissal, statutory redundancy payments etc. They also retain their existing terms and conditions, except those relating to old age, invalidity or survivors' benefits under occupational pension schemes.
In addition, the transferee inherits liability for all acts or omissions by the transferor (or an earlier employer) in relation to transferring employees, except for criminal liabilities (eg health and safety offences). These could include:
personal injury claims
arrears of wages
The transferee also inherits the right to claim for pre-transfer personal injuries to transferring employees under the transferor’s compulsory personal injury liability insurance.
Public sector employers do not have to carry this type of insurance and instead self-insure. As this could put employees transferring out of the public sector in a worse position than private sector ones, TUPE provides that the transferor and transferee are jointly and severally liable for personal injury claims relating to pre-transfer employment where the requirements for compulsory liability insurance do not apply.
Benefits of substantial equivalence must be provided to replace terms that cannot be physically replicated following the transfer. This kind of term is usually referred to as a term ‘tailored to t
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
List of supplies that are exempt from VATThe goods or services that are exempt from VAT are listed under various group headings within VATA 1994, Sch 9.It is important to remember that not all supplies that come within a heading will be exempt from VAT. For example, income from the placing of bets
Class 2 and Class 4 NIC are payable by self-employed earners and partners in a partnership. This guidance note considers Class 2 contributions. For Class 4 contributions, see the Class 4 national insurance contributions guidance note.Class 2 NIC arise where a self-employed individual has income
This guidance note provides an overview of the partial exemption de minimis rules. This note should be read in conjunction with the Partial exemption overview guidance note. If a business incurs an insignificant amount of input tax which is associated with exempt supplies (exempt input tax), it may
This note applies to transactions whilst the Great Britain was a member of the EU and during the transition period that ended on 31 December 2020. For information on Northern Ireland see the Northern Ireland topic. Triangulation is an EU simplification measure that was introduced in order to reduce