There will often be wider commercial considerations as to whether to progress the deal and employment issues can take a back seat
them regarding any measures that they are proposing to take. As the incoming employer, these obligations apply to any existing employees you have who may be affected (rather than the new employees). These requirements are detailed,
but bear in mind: ■The information and consultation process must be undertaken with “appropriate representatives” – appropri- ate representatives are either recognised trade union representatives for the relevant business/function or elected employee representatives. ■Specific information must be provided to the representatives, including: the fact that a transfer is taking place; when it is to take place and the reasons for it; the legal, economic and social implications of the transfer; and any measures (or changes) that are to be taken in connec- tion with the transfer. ■There are no specific timeframes as to when the information must be provided but it must be long enough before the transfer to enable consultation to take place. ■Breach of these obligations could result in a penalty of up to 13 weeks’ actual pay per affected employee. This could be a significant liability. This is a joint and several liability, so claims can be brought against either or both the old and new employer.
Transferred employees – special protection As the new employer, TUPE might restrict your ability to dismiss employees who have transferred or to change their terms
www.attractionshandbook.com Changes to terms and conditions can
only be made in limited circumstances. Changes will be void if the principal reason for the change is the transfer itself, unless there is an ETO reason (see above) or the terms of the employment contract permit the change in any event. It is worth noting that some of these
protections are relaxed when the former employer is insolvent.
Blueprint Entertainment acquired
Explorado Family Adventure Science Park from Merlin Entertainments
and conditions of employment. Where the principal reason for the dismissal is the transfer itself, that dismissal will be automatically unfair and will allow the employee to bring a claim of unfair dismissal (if they have two years’ service). However, if the new employer has an economic, technical or organisational (ETO) reason which entails a change in the workforce (essentially a reduction in headcount or change in function), it may be possible to achieve a fair dismissal. Relocation or restructuring exercises may allow for this if structured properly.
UNWANTED EMPLOYEES It is not possible to contract out of TUPE, as it will apply as a matter of law irrespective of any commercial agreement between the parties. However, parties can, and often do, negotiate indemnities to apportion any liabilities associated with the employees as part of the commercial agree- ment (including, for example, in relation to dismissal costs). This means that it may be possible to agree that the old employer should retain or dismiss employees and/or be responsible for employee costs. There will often be wider commercial
considerations as to whether to progress the deal and employment issues can take a back seat. However, occasionally, the cost of taking on the workforce can be critical in determining the viability and/or price of the purchase.
■■About the author: Shelley Crofts is a senior associate at Burges Salmon LLP. Email:
shelley.crofts@
burges-salmon.com Tel: +44 117 902 7252
ATTRACTIONS HANDBOOK 2015-2016 117
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