Liabilities transfer

The transferee effectively steps into the transferor’s shoes with regard to the transferring employees. All of the transferor’s rights, powers, duties and liabilities under or in connection with the transferring employees’ contracts pass to the transferee and any acts or omissions of the transferor before the transfer are treated as having been done by the transferee.

This includes rights under the employment contract and most liabilities under statute and tort (including personal injury). Health and safety claims (but not criminal liabilities arising under health and safety legislation) also transfer to the new employer. The transferor’s vicarious liability to a transferring employee for torts committed by a fellow employee (whether or not that employee transfers) will probably also pass to the transferee.