Service Occupancy Agreement Tupe

When a company undergoes a transfer of undertakings, also known as TUPE, employees are often the focus of attention. However, there are other important considerations to bear in mind, and one of these is the service occupancy agreement or SOA.

What is a service occupancy agreement?

A service occupancy agreement is a legal agreement that sets out the terms of a person’s occupation of a property. This could be a commercial property or a residential property, and the occupant could be an employee, a contractor, or a tenant. The agreement defines the rights and responsibilities of both the occupant and the property owner, and covers issues such as rent, maintenance, use of facilities, and termination of the agreement.

How does TUPE affect service occupancy agreements?

Under TUPE, the rights and obligations of employees are automatically transferred from one employer to another. However, this principle does not apply to service occupancy agreements. This means that if an employee occupies a property as part of their employment, their occupation may not automatically transfer to the new employer.

If a service occupancy agreement is not specifically addressed during a TUPE transfer, the employee’s occupation may be terminated, and they may no longer have the right to occupy the property. This could cause significant disruption, particularly if the employee relies on the property for their work.

To avoid this situation, it is important to ensure that service occupancy agreements are given proper consideration during a TUPE transfer. This may involve transferring the agreement to the new employer, negotiating new terms, or terminating the agreement and finding alternative arrangements for the employee.

What are the key considerations for service occupancy agreements during TUPE?

When dealing with service occupancy agreements during a TUPE transfer, there are several key considerations to bear in mind. These include:

– Identifying all service occupancy agreements in place and ensuring that they are reviewed as part of the due diligence process.

– Determining whether the service occupancy agreement is an essential part of the employee’s role and whether it is necessary for them to continue to occupy the property.

– If the service occupancy agreement is essential, considering whether it is appropriate to transfer the agreement to the new employer or negotiate new terms.

– If the service occupancy agreement is not essential, considering alternative arrangements for the employee, such as finding new premises or agreeing a new rental agreement with the landlord.

– Ensuring that any changes to service occupancy agreements are communicated clearly to employees and that they understand their rights and obligations.

In conclusion, service occupancy agreements are an important consideration during a TUPE transfer, particularly if an employee relies on a property for their work. By identifying and addressing these agreements, employers can ensure a smooth transition and avoid any disruption to their business operations.