By Michael Ryley
The employment legislations and group of workers administration concerns that come up while companies are acquired and offered are of significant difficulty not just to the staff but additionally to the administration of either client and seller. This file may help managers to appreciate the major useful and criminal matters, in attaining consensus and involvement in any respect degrees, comprehend and enforce TUPE laws and determine the documentation that should be drafted or reviewed in the context of a merger, acquisition or disposal.
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Extra resources for Employment Law Aspects of Mergers and Acquisitions: A Practical Guide (Thorogood Reports)
Example text
A transferee employee will be entitled to rely on the insurance policy of the transferor in respect of transferring employees: see Bernadone v Pall Mall Services Group [2002] IRLR 487. In certain circumstances, the industrial injury claim will not transfer but will be a joint and several liability of the transferor and the transferee (see Regulation 17 of TUPE). Typically, the purchaser will in any event seek a warranty in respect of claims originating prior to the transfer date. THOROGOOD PROFESSIONAL INSIGHTS 45 E M P L O Y M E N T L AW A S P E C T S O F M E R G E R S A N D A C Q U I S I T I O N S – A P R A C T I C A L G U I D E This draws attention to the need for purchasers to undertake an HR audit as soon as possible after the transfer to assess the workforce which has been inherited.
Early retirement rights are likewise transferable (see Beckmann [2002] IRLR 578). • Where the transferor provided occupational pension scheme benefits, the transferee employer will be required to offer pension benefits to a certain level, although there is no obligation to match the level of pension benefits to which the employee was entitled pre-transfer. The transferor will be required to match employer contributions up to 6 per cent of pensionable salary in a stakeholder scheme or provide a suitable equivalent.
This could include making an offer of employment to someone such as Jones. The purchaser would be free to offer whatever terms and conditions it wanted. Jones’s continuity of employment would not be transferred. If the purchaser THOROGOOD PROFESSIONAL INSIGHTS 40 E M P L O Y M E N T L AW A S P E C T S O F M E R G E R S A N D A C Q U I S I T I O N S – A P R A C T I C A L G U I D E does not take on any of the maintenance staff, the maintenance department serving the remaining three stores of the vendor would be overstaffed to the extent of approximately one half an employee.