From 2 July 2018, HMRC will apply all National Minimum Wage (NMW) liabilities, including the full penalty amount, to the new employer following a TUPE transfer.
It was previously the case that HMRC charged the former employer for all or part of the penalties arising from NMW arrears which accrued before the TUPE transfer.
Incoming employers should be aware of this change of approach and ensure that the risk of taking on liability to pay penalties arising before the transfer is taken into consideration when negotiating any transfer agreement.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
