TUPE - Transfer of Undertakings (Protection of Employment) Regulations 2006 & Selling a Business

In our previous article on TUPE - Transfer of Undertakings (Protection of Employment) Regulations 2006 , we wrote about the two distinct duties that TUPE legislation places on employers, both the seller and the buyer.

In this article, we're focusing on the obligations Sellers of a business face, specifically the provision of Employee Liability Information (ELI).

TUPE & Employee Liability Information Obligations

The seller must provide certain information (known as ‘Employee Liability Information’ ('ELI') to the purchaser about the employees and their terms and condition of employment. A failure to provide this information can entitle the purchaser to make a claim against the seller, usually for a minimum award of £500 per employee.

Notification of the ELI must be given not less than 14 days before completion or, if special circumstances make this not reasonably practicable, as soon as reasonably practicable thereafter.

ELI must include the following information:

1) The identity and age of the employee

2) Information of any disciplinary action taken against an employee and/or grievance invoked by an employee within the last two years

3) Information of any court or tribunal case, claim or action brought by an employee against the seller within the last two years and whether the seller has reasonable grounds to believe that an employee may bring a claim against it arising out of the employee's employment

4) Information of any collective agreement which will have effect after the transfer

5) The particulars of employment that an employer is obliged to give to an employee pursuant to section 1 of the 1996 Act

Are you selling your business?  Not sure if TUPE applies or simply want to make sure you comply with employment law and your obligations to provide Employee Liability Information?

Give us a call today on 0800 612 4772 or 0141 314 3947 or request a Free HR Services Quote and we'll be happy to help.