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Asset Sale - TUPE
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<blockquote data-quote="Naomi U" data-source="post: 47140" data-attributes="member: 4043"><p>I should have stated in my response above that although the TUPE only applies to asset sales, its application is restricted further to such deemed to be a "relevant transfer" of assets.</p><p></p><p>This has been clarified to mean a "transfer of an economic entity which retains its identity". When determining if this has occurred the court will take in factors such as:</p><ol> <li data-xf-list-type="ol">the type of undertaking being transferred;</li> <li data-xf-list-type="ol">whether any tangible assets (buildings, moveable property etc) are transferred;</li> <li data-xf-list-type="ol">whether any intangible assets are transferred and the extent of their value;</li> <li data-xf-list-type="ol">whether the majority of the employees are taken on by the new employer;</li> <li data-xf-list-type="ol">whether any customers are transferred;</li> <li data-xf-list-type="ol">the degree of similarity between the activities carried on before and after the transfer;</li> <li data-xf-list-type="ol">the period for which the activities were suspended, if any.</li> </ol><p>In your example, I think it would be fair to contest the application of TUPE as there is a significant difference between a chain of pubs and a chain of IT companies.</p><p>From my experience, I highly doubt you would get a similar example as any focus will be on your wider understanding.</p><p></p><p>I hope this helps and best of luck!</p></blockquote><p></p>
[QUOTE="Naomi U, post: 47140, member: 4043"] I should have stated in my response above that although the TUPE only applies to asset sales, its application is restricted further to such deemed to be a "relevant transfer" of assets. This has been clarified to mean a "transfer of an economic entity which retains its identity". When determining if this has occurred the court will take in factors such as: [LIST=1] [*]the type of undertaking being transferred; [*]whether any tangible assets (buildings, moveable property etc) are transferred; [*]whether any intangible assets are transferred and the extent of their value; [*]whether the majority of the employees are taken on by the new employer; [*]whether any customers are transferred; [*]the degree of similarity between the activities carried on before and after the transfer; [*]the period for which the activities were suspended, if any. [/LIST] In your example, I think it would be fair to contest the application of TUPE as there is a significant difference between a chain of pubs and a chain of IT companies. From my experience, I highly doubt you would get a similar example as any focus will be on your wider understanding. I hope this helps and best of luck! [/QUOTE]
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