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:
Changing an employee’s employment arrangements as part of a TUPE transfer does not always involve a change in the employee’s terms and conditions. The contract may already include inherent flexibility, such as a right for the employer to change duties. Such flexibility can be used in the same way following a TUPE transfer as in other situations with no contractual variation. However, it should be borne in mind that TUPE allows an employee to resign and claim constructive dismissal where there is a ‘substantial change in working conditions’ to the employee’s material detriment. ‘Working conditions’ here includes non-contractual conditions.
Further, there will be information and consultation obligations under TUPE to the extent that the proposed changes to employment arrangements constitute ‘measures’. The definition of 'measures' in relation to TUPE is relatively broad and includes any changes that were not an inevitable consequence of the transfer. Following a decision by the EAT, the key question an employer should ask itself when attempting to determine whether a change constitutes a measure is, 'does the change have the potential for causing concern amongst the employees?' In Institution of Professional Civil Servants V Secretary of State for Defence  IRLR 373, the High Court described ‘measures’ as ‘a word of the widest import’. It can catch any action, step, or arrangement envisaged by the employer.
In a non-TUPE situation where a change in employment arrangements involves a contractual change, common law requires:
consent from that employee
consent from recognised trade unions where terms are collectively bargained
a valid consideration for the change
Consideration for a consensual change is usually given simply by the continuation of the employment relationship (although whether this does in fact represent consideration will depend on all the circumstances), or an incentive for consent is often provided in the form of a pay rise or one-off bonus.
In contrast, in the context of a TUPE transfer, varying contractual terms is not as simple as merely seeking
**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
Generally speaking, inheritance tax (IHT) is charged only on transfers of value by individuals and trusts. However, to prevent avoidance of the tax, the charge is extended to participators in close companies where:•a close company makes a transfer of value, or•the share capital or loan capital of a
Working rule agreements are used in the construction industry and similar areas. They are national agreements made between trade unions and employers across the country, setting out the terms and conditions that apply to particular categories of hourly paid manual workers. The workers concerned are
Why defer a gain?An individual’s net taxable income and chargeable gains for the tax year influence the rate of tax payable on their capital gains. See the Introduction to capital gains tax guidance note.Depending on the nature of the asset disposed of, this can result in the individual paying
This guidance note provides an outline of the main trustee powers and duties. Although there is a degree of overlap between them, the term ‘powers’ usually refers to discretionary or optional actions which the trustees may take for the purpose of maintaining the trust and supporting beneficiaries.
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.