Contracted out/contracted in meaning

This checklist summarises the actions to undertake and the matters to weigh up when the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE 2006), SI 2006/246 are engaged on a business disposal or a change in service provision, where appropriate. It additionally flags up the pertinent Practice Notes and Precedent materials. It is not produced for clients, though it can be tailored for them if required. See also the following TUPE-related checklists: What transfers under TUPE, and who is liable—checklist Pension issues on a TUPE transfer—checklist Checklist—immigration-related requirements on a TUPE transfer Drafting a tripartite settlement agreement—checklist Legal background For a summary of TUPE 2006’s general effect and obligations, consult TUPE and asset purchases—overview. Obtain essential information Pin down exactly what is being transferred or contracted out (this could be a business, a business unit, or another economic activity) and how that will be described in the relevant operative documentation, as necessary. See Practice Notes:...

This Checklist is for use as part of a due diligence exercise when reviewing an option to renew a lease. It is chiefly directed at a buyer of a reversionary interest in the lease that includes the option, though it also flags matters a buyer of leasehold property benefiting from an option should consider. Ask whether the option gives rise to a perpetually renewable lease. Confirm the renewal provision clearly states the new lease will not itself include a further option to renew. Where each renewal lease carries another option, a perpetually renewable lease is created. A perpetually renewable lease is converted into: in the case of a head lease, the grant of a lease for 2,000 years; and in the case of an underlease, the grant of a lease for a term ending one day before the expiry of the term from which it is derived, and in both scenarios without any right to renew...

Trustees' duties under trust law When considering whether to approve a closure proposal, trustees must ensure they comply fully and consistently with their fundamental trustee obligations under trust law, namely: acting in the best interests of the scheme beneficiaries; and advancing the purposes of the scheme. In deciding whether closure is in the beneficiaries’ best interests, in particular, trustees should: assess the overall long-term effect of the changes on members and their accrued entitlements; take into account the employer’s interests as a beneficiary of, and contributor to, the scheme; and also take account of the impact the closure will have on the employer’s business. Exercising the scheme's amendment power...

Virgin Media issue On 1 September 2025, Pensions Minister Torsten Bell put forward a package of amendments to the Pension Schemes Bill, among other measures featuring a long-awaited remedy to the so-called Virgin Media problem. A July 2024 judgment of the Court of Appeal in Virgin Media Ltd v NTL Pension Trustees II Ltd and others [2024] EWCA Civ 843 created a precedent with potentially far-reaching consequences for former contracted-out, salary-related occupational pension schemes. The Court of Appeal, in a unanimous decision, threw out the employer’s appeal and agreed with the High Court that, in the absence of actuarial confirmation, every modification to benefits within contracted-out salary-related occupational pension schemes was invalid...

The Commission issued a study exploring trends, hurdles and prospects in algorithmic management, released a year and a half after it was finalised in December 2023. Observers link this notable lag to internal manoeuvring after a change at the top and view it as part of a broader attempt to buy time. Political considerations The former European commissioner for employment, Nicolas Schmit, openly backed workplace AI legislation, winning wide backing from centre-left EU lawmakers. By contrast, the incoming social affairs commissioner, Roxana Mînzatu, has adopted a cautious stance and has not pledged a binding measure. The present legislative term tilts further to the right than the last, with deregulation prominent on the policymaking agenda. Even so, despite the Commission’s current drive to pare back rules, tabling a bill on an issue prized by progressive lawmakers could prove useful later in the mandate. As a result, the Commission seems to be playing for time and has contracted out fresh research on the effects of algorithmic management and AI at...

FTT allows taxpayer’s R&D appeal (Stage One Creative Services Ltd v HMRC) In Stage One Creative Services Ltd v HMRC [2024] UKFTT 1059 (TC), the FTT upheld the company’s appeal concerning R&D claims. The business delivered engineering, construction and automation solutions for live events and installations. One project required it to design, build and install an intricate scenic set for a theatre production: an automated ‘pearl’ that flew across the auditorium and then opened to reveal a performer inside. The company sought R&D relief on costs incurred under multiple contracts, supported by detailed R&D reports. Typically, clients would approach with an idea and were more focused on the end result, not the methods adopted. The written agreements made no reference to R&D and were on a fixed-price basis, giving the company freedom to determine what research and development was necessary to achieve the brief. Knowledge arising from R&D and any intellectual property remained the property of...

What is a CVA? A company voluntary arrangement (CVA) is a form of insolvency that permits a company to enter a binding agreement with its creditors to compromise unsecured debts or otherwise agree how its affairs are handled. The directors continue to run the business, under the oversight of an insolvency practitioner. Retailers, particularly those with extensive property portfolios, frequently adopt so‑called ‘landlord CVAs’ to reset rental commitments and shut loss‑making stores. This note outlines how property law and landlord and tenant considerations may emerge under such a CVA. It highlights provisions commonly included in CVAs and explains how they tend to work in practice. Nevertheless, each CVA will vary according to the precise terms proposed. It is therefore vital to examine the CVA proposal carefully to assess its effect on creditors. This note does not provide detailed guidance on the mechanics of approving and implementing a CVA. For Practice Notes addressing the CVA procedure, see: Company voluntary arrangements—an introductory guide The CVA proposal and...

Qualifying R&D expenditure (pre-1 April 2024) This Practice Note sets out the scope of qualifying expenditure for two R&D relief schemes, each subject to detailed commencement and transitional provisions: the research and development relief for small or medium-sized enterprises (SMEs) for accounting periods beginning before 1 April 2024—see Practice Notes: SME R&D relief—additional deduction (pre-1 April 2024) and SME R&D relief—tax credit (pre-1 April 2024); and the R&D expenditure credit scheme applying to accounting periods beginning before 1 April 2024—see Practice Note: R&D expenditure credit (pre-1 April 2024). Together, this Practice Note refers to these as the pre-1 April 2024 schemes. For information about the reliefs generally applying to accounting periods beginning on or after 1 April 2024, see Practice Notes: The merged R&D expenditure credit (post-1 April 2024) and Enhanced relief for R&D-intensive loss-making SMEs (post-1 April 2024). For details on what counts as qualifying R&D expenditure for those two post-1 April 2024 schemes, see Practice Note: Qualifying R&D expenditure...

This Practice Note sets out the principal steps for properly bringing to an end a defined contribution (DC) occupational pension scheme—also described as a money purchase occupational pension arrangement or a trust-based defined contribution plan. Throughout this Practice Note, this type of arrangement is termed a ‘DC scheme’. The guidance applies across a range of DC schemes, including trusts that sit outside the authorised master trust framework and small self-administered pension schemes (SSASs), although the latter may, in certain cases, be excluded from particular statutory obligations or requirements. This Practice Note does not cover the winding-up of any: an ‘authorised master trust’ under the Pension Schemes Act 2017 (PSA 2017)—for further detailed information, please see Practice Note: The authorisation and supervisory regime for master trusts, contract-based DC arrangements (eg group personal pension arrangements)—for further details and guidance, see Practice Note: Winding up of personal pension schemes Statute makes distinct and specific provision for hybrid schemes (combining defined benefit (DB) and DC...

1 Introduction 1.1 For this policy, ‘homeworking’ refers to carrying out all, or virtually all, of your contracted hours from your home or an appropriate remote site within the UK, as authorised by your manager in advance. It does not cover ‘hybrid working’, where employees spend some time at the workplace and the remainder at home or another suitable remote location, splitting their working hours between both settings. For information about our approach to hybrid working, please refer to the Company’s Hybrid working policy. 1.2 This policy does not anticipate home or remote working from outside the UK, since that would raise substantial additional legal and practical considerations for both you and the Company. If you intend to work from a location outside the UK, you must first secure prior written permission from the Company, via your manager, before proceeding. The procedure for considering such requests will be explained to you when you make your request. Please note that you should not travel to work abroad without your...

1 Organising the meeting Send the RTWI invitation to the employee. Add the appointment to both your diary and the employee’s. Reserve a suitable meeting room. Put measures in place to avoid interruptions. 2 Check absence records and complete section A of the RTWI meeting proforma Confirm and record the first day of absence. Verify and note the final day absent. Enter the return-to-work date. Work out the total days absent for this instance. Confirm the firm’s absence reporting procedure was followed. Record certification needs: seven days or fewer—self-certification; eight days or more—GP fitness note provided. Note the stated reason for absence. Record how many occasions of absence there have been in the past 12 months. Record the total number of days absent in the past 12 months. Calculate the 12-month absence percentage: total days absent ÷ total contracted working days × 100. 3 Check contractual...

To: [ insert full name of Guarantor ] of [ insert address ] From: [ insert full name of Landlord ] of [ insert address ] Important notice You are being presented with a lease that lacks security of tenure. Do not bind yourself to this lease until you have studied this notice thoroughly and sought guidance from a professional adviser. Typically, business tenants benefit from security of tenure—the right to remain in their business premises once the lease concludes...

Form LTBT1 Form LTBT1 is prescribed by the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003, SI 2003/3096 (the Order). Where the parties intend to contract out of, or exclude, sections 24–28 of the Landlord and Tenant Act 1954 (LTA 1954), the Order stipulates that particular steps must be completed before any such agreement is concluded. Landlords frequently seek the flexibility of a contracted‑out lease, as it allows the tenancy to end on expiry of the term without the tenant acquiring a right to a new lease. Under the LTA 1954, the former position required court approval for a contracted‑out arrangement (the Pre‑2004 Procedure). The Order replaced that regime with a new process that obliges the landlord to serve a warning notice in, or in a form substantially similar to, that set out in SI 2003/3096. This notice must be given before the lease is granted or, if the parties propose to enter into an agreement for lease, before that agreement is made, because the tenant must receive...

Under Part II of the Landlord and Tenant Act 1954 (LTA 1954), security of tenure covers most business leases, save where the parties have ‘contracted out’ of those rights. Section 38A of the LTA 1954 permits landlord and tenant to agree that security of tenure will not apply. To make the agreement effective, the parties must comply with the contracting-out process specified in LTA 1954, s 38A(3) and Regulatory Reform (Business Tenancies) (England & Wales) Order 2003 (RRO 2003), SI 2003/3096, Sch 2...

Part II of the Landlord and Tenant Act 1954 (LTA 1954) Part II of the LTA 1954 confers security of tenure on business tenants unless its requirements have been contracted out. As a result, a commercial lease does not lapse by effluxion of time; instead it continues as a statutory tenancy until it is brought to an end in accordance with the LTA 1954, or when the court grants a new lease on the application of either the landlord or the tenant, or when the lease is terminated by surrender or by forfeiture under the scheme set out therein in full...