Global company is selling assets in both AUS and UK to an AUS (only) company (5 AUS staff and 1 UK staff .. me). No evidence that new AUS company has set-up a UK registered company yet. One of conditions of asset sale imposed by existing customers, who have contract clauses allowing them to block asset sale, is that I remain doing my job in new organisation. Work is mission critical for existing customers. I have not been made redundant and am not resigning (19 years service) but I am being TUPE'd apparently. How it is possible to TUPE me into a foreign company ? if I am being TUPE'd does the acquiring company need to set-up a UK limited company to which my liabilities can be transferred ? How can it work any other way ?
Province/Country relating to question: UK
HiThank you for your question and welcome to Just Answer. I will try to help with this. Please RATE my answer OK SERVICE or above.Is there any reason you think you cannot be TUPEd over to a foreign company?
I will not be emigrating to Australia. My understanding is that when this usually happens, i.e. a foreign company employs staff overseas, they usually set-up a UK Ltd company which formally "employs" the staff albeit all other lines of reporting and management go abroad, the UK registered company acts as the "employer". How can I be "employed" in the UK and that not be for a UK registered company ? How will TAX/NI/PAYE be dealt with if I am remaining as a employee status ?
Hello and thank you for your question, which I will be happy to assist you with. My colleague has asked me to look at this. Please let me know if you query is basically tax related?
No, nothing to do with TAX. I thought the question was clear enough. When a UK branch of a global company sells assets including staff (myself) to a foreign company and the staff are supposedly being transferred under TUPE how can that be possible when a) The member of staff is not emigrating and b) the purchasing company had no UK registered company to trade under. It seems to me that TUPE can only apply if being transferred from one UK company to another UK company. Is that correct?. For example one of the resposibilities of the employer doing thr TUPE transfer is to transfer the employee liabilities. How on earth is that possible when the company being transferred to is foreign and not subject to UK TUPE regulations under the employment law relevant in that country. I need to know if the purchasing company must first open a UK ltd company (Subsidiary) for the selling compnay to be able to TUPE to?.
Apologies for the slight delay, I experienced some temporary connection issues earlier. TUPE does not only apply to transfers that have occurred within the UK, or even the European Union, where TUPE also has application through similar legislation. This matter has actually been the subject of litigation a few years ago and the Employment Appeal Tribunal decided that TUPE can apply to transfers where the new employer is situated overseas and that includes countries outside of the EU.The important factor is whether the undertaking to be transferred was situation in the UK immediately prior to the transfer taking place. Here are a couple of detailed practice notes that consider this decision:http://www.pinsentmasons.com/mediafiles/29554025.pdfhttp://www.addleshawgoddard.com/view.asp?content_id=3247&parent_id=3243IMPORTANT: As professionals on this site, it is extremely important that our customers rate the service we provide. This only takes a few seconds and your question will NOT close. I would therefore be grateful if you could please choose one of the following options: OK Service, Good Service or Excellent Service. If you feel the need to leave a lower rating, please reply to me first with any further questions you have. I will be happy to assist further and clarify anything you need me to before you go on to leave your rating. Thank you
Expert in UK Employment Law
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