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ARTICLE · 03 AUGUST 2020

Can You Divide An Employment Contract Between Multiple Transferees?

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The European Court of Justice (ECJ) decision in ISS Facility Services v Govaerts is a significant departure from existing UK case law...

United KingdomEmployment and HR
Eleanor Boyd
Eleanor Boyd

The European Court of Justice (ECJ) decision in ISS Facility Services v Govaerts is a significant departure from existing UK case law...

...relating to transfers under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE).

Current UK Case Law

The Acquired Rights Directive is the European legislation from which TUPE is derived. Neither the Acquired Rights Directive or TUPE expressly confirms what should happen to an employment contract where there is a transfer of undertaking involving several transferees.  

Kimberley Group Housing Ltd v Hambley and others is the leading case in the UK on this issue and suggests that employment contracts should transfer to the transferee taking on the majority of the activities. This interpretation of the Acquired Rights Directive has now been expressly rejected by the ECJ.

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