Welcome to our latest Coffee Break in which we look at the latest legal and practical developments for employers
Right to participate in a share incentive scheme transferred under TUPE
When the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) apply on the transfer of a business or a service to protect those working within it, it is important for the incoming employer (transferee) to understand what employment entitlements transfer with employees from the outgoing employer (transferor) so that appropriate arrangements can be made to continue those benefits post-transfer.
Difficulties can arise where transferring benefits are intrinsically linked to the outgoing employer and which an incoming employer is unable to replicate exactly: for example, flexible benefits schemes, share schemes and bonus provisions linked to company performance. Case law has held that in circumstances where there is found to be a continuing entitlement to benefit from such schemes under TUPE, the transferee should provide a benefit of "substantial equivalence".
So what rights and entitlements do transfer under TUPE? Regulation 4 TUPE provides that where the employment contract of an employee transfers from the transferor to the transferee under TUPE, "all the transferor's rights, powers, duties and liabilities under or in connection with any such contact shall be transferred… to the transferee…" (our emphasis).
In a recent case, the Employment Appeal Tribunal (EAT) had to...
Congress leader Jairam Ramesh criticised the Election Commission of India (ECI) on October 2 for appointing a committee to review ECINET’s compliance with legal provisions, describing the commissi...