Transfer of Liability for Negligence and Breach of Statutory Duty

The High Court has held that on the transfer of an undertaking the employer's liability for negligence and breach of statutory duty can pass to the transferee by virtue of TUPE. The right to an indemnity under the employer's liability insurance is also transferred to the transferee under TUPE. On the facts therefore, the new employer could claim on the previous employer's insurance policy. This is a strange decision and developments are awaited on this line of argument.
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