If an independent union has been recognized by the outgoing employer for the transfer of workers, recognition is also passed on to the incoming employer. Since 2014, tariff conditions can be renegotiated after one year, provided that they are generally no less favourable to the employee. The question arose as to whether compensation was covered by the settlement agreement: the question was whether compensation in the transaction contract included wages, commissions and leave allowances for the period from April 1, 2018 to the termination date, as well as commissions for March 2018 (paid monthly late). The sum of these controversial payments was $387,303. However, this case serves as a warning to practitioners when developing the provisions of the TUPE, for example. B in an asset buyback or outsourcing contract. A separate distribution clause, which is located next to the allowances, should normally provide that all debts (including wages, salaries, commissions, leave allowances, etc.) are distributed on a temporal basis, so that a portion of the corresponding rights awarded before the transfer date is borne by the transferor. When a client switches service providers, it may be a contractual term that TUPE applies and the new contractor is required to take care of the outgoing contractor`s staff. If the new contractor is required to admit that TUPE is valid as the duration of an agreement, it can be a costly concession and is an element to be considered in determining the value of the contract. It is recommended that each tender document include a provision that allows the bidder to adjust its prices when TUPE is applicable.
The outgoing employer is required to provide the arriving employer with written information about the transferred workers, including identity, age, employment data, disciplinary and complaint documents, workers` rights and collective agreements, as well as all related rights and commitments that are transferred. This information should not be provided less than 28 days before the transfer, although the new employer will in practice endeavour to obtain this information much earlier. The High Court considered whether a business transfer (employment protection) (TUPE) for pre-transfer earnings included amounts whose payment dates had not yet crystallized. (1) The corresponding compensation clause stipulated that UR Harrods should, as part of a licensing agreement, detach a hair and beauty salon and spa from the Harrods department store of all “employment commitments” (defined in the agreement to include “all contractual payments”), in connection with: Urban Retreats Ltd (“UR”), as part of a licensing agreement.