Tupe Transfer Employee Concerns

Summary

Under TUPE regulations, employees can resign without notice if a transfer significantly changes their working conditions detrimentally. If no such changes occur, employers may pursue breach of contract claims. Employers can discuss potential damages for breach of contract, including costs for hiring replacements, temporary staff, and lost business. Conversations should be factual, non-coercive, and documented. Employees must receive written notice of the transfer, but informal discussions can occur beforehand.

Full Conversation

I’m in the UK. I’m about to acquire a business through assets under TUPE. I am worried that an employee is waiting to resign until the transfer day and will leave without giving notice.
Hi ****,
Under TUPE (Transfer of Undertakings (Protection of Employment) Regulations *), employees can resign and leave without notice if the transfer significantly changes their working conditions to their detriment.
- Are there any significant changes to working conditions for this employee?
This will help provide more specific guidance.
The transfer won’t affect them to a material detriment. Can I legally explain the legal ramifications of resigning without notice and that I would persue them for damages if they were to do so?
Hi ****,
Under TUPE, if an employee resigns without notice and there are no significant detrimental changes to their working conditions, you can potentially pursue them for breach of contract. Here's what you can do:
- Explain the legal requirement for notice.
- Mention potential damages for breach of contract.
Would you like to know more about the specific process for pursuing damages?
Are there any liabilities for explaining this to them during the consultation process?
Hi ****,
You can explain the legal ramifications to the employee. However, ensure that:
- Your explanation is factual and not coercive.
- You do not misrepresent the legal consequences.
- You document the conversation to avoid future disputes.
Would you like more information on documenting such conversations?
Can I explain to them that I am worried that they will resign without notice and that I would seek damages if this were the case.
Hi ****,
Yes, you can explain to the employee that you are concerned they might resign without notice and that you would seek damages if this occurs. Ensure that:
- Your explanation remains factual and non-coercive.
- You do not misrepresent the legal consequences.
- You document the conversation thoroughly.
Would you like more details on how to document this conversation properly?
What damages would I likely be awarded if I were to bring a claim?
Hi ****,
Under UK law, if you pursue a claim for breach of contract due to an employee resigning without notice, potential damages may include:
- Costs incurred from hiring a replacement.
- Additional costs from temporary staff.
- Loss of business resulting from the sudden departure.
Would you like details on calculating these damages?
Yes
Hi ****,
To calculate potential damages, consider the following:
- **Costs of Hiring a Replacement:** Expenses for recruitment and training.
- **Temporary Staff Costs:** Wages for temporary workers covering the gap.
- **Lost Business:** Revenue lost due to the sudden absence.
Would you like more guidance on documenting these costs for a claim?
Could you tell me more about the damages I could seek for temporary staff costs?
Hi ****,
For temporary staff costs, you can seek damages that include:
- **Wages Paid:** The total compensation paid to temporary staff.
- **Agency Fees:** Any recruitment agency fees incurred.
- **Training Costs:** Expenses for training the temporary staff.
- **Overtime Pay:** Additional wages for existing staff covering extra hours.
Would you like more detailed guidance on documenting these expenses?
The employee is currently employed by the transferor of the business. I am also employed but this business so this employee is a colleague. Am I able to discuss the transfer informally with him?
Hi ****,
You can discuss the transfer informally with your colleague under TUPE regulations. Ensure that:
- The conversation remains factual and non-coercive.
- You do not misrepresent any legal consequences.
- You document the conversation to avoid future disputes.
Would you like more guidance on documenting these discussions?
He has not been given written notice yet of the transfer. Does this change anything?
Hi ****,
Yes, the lack of written notice to the employee about the transfer can impact the situation. Under TUPE regulations, employees must be informed in writing about the transfer. This notice is crucial for the following reasons:
- Ensures transparency and clarity about the transfer.
- Provides the employee with their rights and any changes in their employment.
Would you like more information on the required content and timing of this notice?
Can I informally discuss the transfer before he is given written notice?
Hi ****,
Yes, you can informally discuss the transfer with your colleague before they are given written notice. However, ensure that:
- The conversation is factual and non-coercive.
- You do not misrepresent any legal consequences.
- You document the conversation for transparency.
Would you like more details on how to document this conversation effectively?