Medium2 marksMultiple Choice
Corporate and Business LawSection BSyllabus CEmployment LawMTQ
This question is part of a case study — click to read the full scenario(Case 49)

SCENARIO 2: CodeStream Innovations, a tech startup, is acquired by a larger competitor, MegaTech PLC. The business is transferred as a going concern. MegaTech immediately tells CodeStream's developers that their salaries will be cut by 15% to match MegaTech's pay scales.

Under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE), what is the legal effect of MegaTech's action?

ACCA · Question 51 · Corporate and Business Law

SCENARIO 2: CodeStream Innovations, a tech startup, is acquired by a larger competitor, MegaTech PLC. The business is transferred as a going concern. MegaTech immediately tells CodeStream's developers that their salaries will be cut by 15% to match MegaTech's pay scales.

One of the developers, angry at the proposed changes, resigns and wishes to claim constructive unfair dismissal. What is the strict statutory time limit for presenting an unfair dismissal claim to an Employment Tribunal?

Answer options:

A.

1 month from the effective date of termination.

B.

3 months minus one day from the effective date of termination.

C.

6 months from the effective date of termination.

D.

6 years from the breach of contract.

How to approach this question

Recall the procedural time limits for Employment Tribunals.

Full Answer

B.3 months minus one day from the effective date of termination.✓ Correct
Under the Employment Rights Act 1996, a claim for unfair dismissal (including constructive unfair dismissal) must be presented to an Employment Tribunal within 3 months (minus one day) of the effective date of termination. (Note: This is subject to mandatory ACAS Early Conciliation, which can pause the clock, but the base limit is 3 months).

Common mistakes

Confusing the 3-month tribunal limit with the 6-year civil court limitation period.

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