Re: carvell : Fri Feb 07, 2014 10:10 pm
How melodramatic.Its actually just to give the employee the option not to be transferred. For any reason he sees fit. As has already been explained at length, by people who DO know things, he simply declines the TUPE transfer, on or before the transfer takes place, and is simply treated as having resigned.
Of course, that would mean, in an insolvency situation, any employment claims he might have will be against the old company.
Might also be worth mentioning that the TUPE requirements are relaxed somewhat where the transferring business is insolvent. This to encourage transferee businesses to take on (more) staff from the former. Picked this up from a major legal firm's website (Pinsent Masons) since far better summarised that I could attempt:
Finally, TUPE is relaxed to protect incoming employers where the exiting employer is insolvent. The liability for redundancy, notice and some other payments to employees will not transfer to the incoming employer. Also, if it is agreed with the trade union or employee representatives, terms and conditions of employment can be changed (without an ETO) if the change is designed to save a failing business. The idea is that companies will be more inclined to "rescue" insolvent businesses, thereby safeguarding employment, where the inherited liabilities are not so onerous.
Of course, that provides more reasons for employees not to avail themselves of the TUPE, depending on if the new employer takes advantage of any or all of those relaxations.