In this month’s highlights, our team summarises the latest developments in UK employment law and their implications for employers. Catch up on August’s highlights here. All future implementation dates remain subject to parliamentary processes and may change.
In ABC v Huntercombe (No.12) Ltd and others, the Court of Appeal unanimously held that a transferor’s vicarious liability to a third-party claimant for the torts of its employees does not pass to the transferee on a relevant transfer under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE).
Background
A patient at Huntercombe Hospital, a privately-run psychiatric facility, alleged that she was mentally and verbally abused by staff and restrained on over 200 occasions.
All events pre-dated a TUPE transfer in around March 2021 from Huntercombe to Active Young People Limited (AYPL). Huntercombe subsequently entered liquidation. The patient therefore argued that Huntercombe’s vicarious liability for the acts of the relevant employees had transferred to AYPL under TUPE. The High Court rejected that argument. The patient appealed this decision.
The Court of Appeal’s Decision
In dismissing the appeal, the Court of Appeal held that TUPE should be construed by reference to the purpose of the EU Acquired Rights Directive (2001/23/EC), from which TUPE derives, rather than by focusing solely on the natural and ordinary...
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