Employer Due Diligence Lessons from UK Share Scheme Case

By , and on November 7, 2023

The recent decision in Ponticelli Limited v Gallagher provides a salient reminder that the right to participate in a share incentive plan can transfer to a new employer under the Transfer of Undertakings (Protection of Employment) Regulations. The right applies even if the employee’s right to participate in the plan arose outside of the contract of employment. The employee will be treated as a leaver under their old employer/transferor’s scheme, and the transferee employer must then provide a scheme of substantial equivalence for the employee to participate in post-transfer.

While this is a Scottish case, the decision is binding on the employment tribunals throughout the UK.

Read more here.

Katie Clark
Katie Clark has significant experience advising on all aspects of contentious and non-contentious employment matters. Katie’s client base spans multiple business sectors and includes global corporations, financial institutions, FTSE 100 companies, manufacturing companies, service providers and start-ups. Katie is noted for her commercial approach to assisting clients to deal with employment issues ranging from day-to-day employee relations, to negotiating public limited company (PLC) board director contracts and significant business restructuring. Read Katie Clark's full bio.

Paul McGrath
Paul McGrath advises clients across a broad range of industry sectors in all areas of contentious and non-contentious UK employment law. His practice covers all aspects of UK employment legislation and day-to-day employment matters, including appointments and terminations, employment status and worker classification issues, employee handbooks and policies, employee data privacy, disciplinary and grievance issues, and restructuring and redundancy exercises. Read Paul McGrath's full bio.

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Charlotte Moorhouse focuses her practice on employment matters. She has a wealth of experience in contentious, non-contentious and advisory work. She has counselled corporate clients on the Coronavirus Job Retention Scheme, TUPE, GDPR, family leave and employee status issues and drafted employment contracts, consultancy agreements, settlement agreements, privacy notices and staff handbooks. Read Charlotte Moorhouse's full bio.




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