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24-11-2014

LLDY Alexandria v (1) Unite the Union (2) Peopleforwork confirms that if a transferor does not inform the representatives of its employees of all the reasons for a transfer then it is in breach of Regulation 13(2) of TUPE 2006.

This judgment provides scope for employee representatives to argue that the transferor is in breach of the duty to inform if there is any reason for the transfer that has not been expressly set out to them.

The amount of compensation to be awarded as a result of such a breach, will depend on the seriousness of the default, but even a small award could add up to a large sum where there are many affected employees.

Taking the decision into account, it may now be possible to argue that the same approach needs to be taken to all information that needs to be provided under regulation 13(2), eg that all the legal, economic and social implications of the transfer for affected employees and all the measures envisaged will need to be provided in order for a transferor not to be in breach of the duty to inform.

 

This is intended for general information only and should not be considered as giving advice in relation to any individual case nor be taken as applying to any particular case. No liability is accepted for any such use of the information contained.

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