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Does a business restructure or TUPE transfer have any immigration or employment permit implications? The answer is yes: where a restructure involves a TUPE transfer, liability for employing foreign nationals without valid immigration permission will transfer to the new employer, and both parties will need to address their post-transfer notification obligations under the Employment Permits Act 2024.
More broadly, immigration compliance should be a priority in any corporate restructure, whether it takes the form of an asset sale, a share acquisition, a merger, or an outsourcing arrangement. The consequences of non-compliance can include criminal liability, operational disruption, and the loss of key personnel.
In our latest instalment of our sibling rivalry series, we look at the immigration implications of a business restructure or TUPE transfer. If employment law and immigration law are occasionally uneasy bedfellows, then restructuring and a transfer of undertaking might be described as the mistress in the relationship, an often-overlooked third party that can dramatically complicate matters. Companies should not keep employment permits, or immigration permissions a dirty little secret during a business restructure!
Transfer of Undertakings
The European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003 (the “TUPE Regulations”) safeguard employee rights in the transfer of a business in Ireland. On a transfer, the transferor's rights...
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