Do Share Incentives Plans Transfer Under TUPE?

The Employment Tribunal recently held in the case of Ponticelli UK ltd v Gallagher that an employee's right to a Share Incentive Plan (SIP) could transfer under TUPE. This was despite the fact that the employee's contract of employment made no specific reference to the plan. The details of the plan were included in a separate partnership share agreement executed in tripartite between employee, employer and the trustees of the SIP.

Mr Gallagher's employer believed, as is common, that including the scheme in a separate agreement would ring-fence the benefit of the scheme in the event that the employee brought a claim for unfair dismissal or where the employee was being transferred under TUPE.