Transfer of Undertakings:

A seller of a care home business gave some limited information to employees about impending transfer but failed to arrange for election of “appropriate representatives” as required by reg. 14 of Transfer of Undertakings (Protection of Employment) Regulations 2006 and accordingly gave no information to, and did not consult with, any such representatives.

The Tribunal found that there were breaches of regs. 13 (2) and (6), as well as reg. 14, of TUPE and ordered the transferor to pay 13 weeks pay, being the maximum compensation in accordance with reg. 15: but made no award against transferee.

The EAT held that:

(1) The Tribunal’s finding of liability against transferor is upheld – The contention that there was no duty to inform under reg. 13 (2) unless transferor were envisaging “measures” on which it was necessary to consult under reg. 13 (6) was rejected – and the case of Institution of Professional Civil Servants v Secretary of State for Defence [1987] IRLR 373 was followed.

(2) It was wrong in principle to award maximum compensation in circumstances where some (though inadequate) information had been given and the measures requiring consultation were of very limited significance – An award of seven weeks pay was substituted.

(3) The Tribunal was obliged by reg. 15 (9) to find the transferee jointly and severally liable with the transferor.