Sponsored Workers and Business Acquisitions
Acquiring a pharmacy can be a multifaceted process, particularly when the pharmacy in question possesses a sponsor licence. This licence, granted by the Home Office, enables employers to hire non-British and non-Irish workers. Following the cessation of free movement on 31 December 2020, numerous businesses have opted to secure a sponsor licence to address their current and future staffing requirements.
Pharmacy operations can utilize a sponsor licence to fill various positions, including Pharmacists, Pharmaceutical Chemists, Dispensary Managers, and Pharmacy Managers.
A TUPE transfer may take place when a business or part of a business is transferred while maintaining its identity post-transfer (known as a business transfer). An example of this is the sale of a pharmacy. Additionally, TUPE can apply when a client hires a contractor for specific tasks, reassigns that contract, or decides to bring the work back in-house (referred to as a service provision change). For instance, if an organization chooses to outsource its cleaning services instead of managing them internally.
When TUPE is applicable, the employees of the transferor (the seller) who are dedicated to the business or service automatically transition to the employment of the transferee (the buyer) under their existing employment terms and conditions. Essentially, the transferee assumes the responsibilities of the transferor concerning the employees’ employment, inheriting all rights, obligations, and liabilities associated with their contracts.
It is important to note that TUPE does not apply to share purchases in a company and may not be relevant in certain situations where the nature of the business or service changes significantly after the transfer.
