26-year employee dismissed after shop sale: TUPE transfer meant no liability for former employer
A post office assistant with 26 years' service was dismissed after her employer sold the shop. The tribunal found a TUPE transfer had taken place, so liability for her claims passed to the new owner and her former employer was not liable.
1 min read · Last updated 18 May 2026
Case details
- #tupe-transfer
- #shop-and-post-office
- #transfer-of-undertaking
- #dismissal-in-connection-with-transfer
- #failure-to-join-transferee
Key facts
- The respondent sold the freehold of the shop and Post Office premises on 4 August 2022.
- The claimant initially indicated she would transfer but later the transferee refused to accept her.
- The respondent dismissed the claimant by letter dated 17 August 2022, effective 31 August 2022.
- The tribunal found there was a TUPE transfer of the business to the transferee on 4 August 2022.
- The claimant's employment transferred to the transferee automatically under TUPE.
- Liability for the claimant's claims passed to the transferee, so the respondent was not liable.
Timeline
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Claimant started employment
Claimant began working for the respondent's predecessor as a post office/shop assistant.
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Respondent purchased business
Fabpost Ltd purchased the business and the claimant's employment transferred to it under TUPE.
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Planning application for refurbishment
The purchasers applied for planning permission, indicating intention to continue the shop and Post Office.
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Claimant confirmed intention to transfer
The claimant confirmed in writing that she intended to transfer to the new owners.
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Sale of freehold completed
The freehold of 10 The Street was sold to Sir Christopher Evans; the tribunal found this was the date of the TUPE transfer.
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Transferee objected to claimant transferring
Ms Taylor, manager of the transferee, stated the claimant's transfer was not part of their plans.
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Respondent ceased trading
The respondent stopped trading from the premises; the claimant was told to lock up and return keys.
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Dismissal letter sent
Mr Williams wrote to the claimant terminating her employment at the end of August.
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Employment ended
The claimant's employment ended.
The legal issue
The tribunal had to decide whether there was a TUPE transfer of the business from Fabpost Ltd to the purchasers, and if so, whether liability for the claimant's unfair dismissal, wrongful dismissal, and redundancy payment claims passed to the transferee, meaning the respondent was not liable.
The outcome
The tribunal dismissed all claims against Fabpost Ltd.
- The tribunal found that a TUPE transfer of the business took place on 4 August 2022, when the freehold and stock were sold.
- Under TUPE, the claimant's employment automatically transferred to the new owner, and liability for any claims arising from her dismissal also transferred.
- Because the claimant had not joined the transferee as a party, she could not pursue her claims against Fabpost Ltd.
No compensation was awarded as the claims were dismissed.
Lessons & takeaways
- If your employer sells the business, your employment may automatically transfer to the new owner under TUPE – even if you are not consulted beforehand.
- If you are dismissed in connection with a TUPE transfer, your claim should be brought against the new employer (the transferee), not the old one.
- Check whether a TUPE transfer has occurred before deciding who to name as the respondent in an employment tribunal claim.
- If you are unsure about the correct respondent, seek legal advice early – failing to join the right party can mean your claim is dismissed.
- A transfer of a business can happen even if only the freehold and stock are sold, as long as the business retains its identity.
This case shows how TUPE rules can leave an employee without a remedy if they bring a claim against the wrong party. The claimant had worked as a post office assistant for 26 years. When Fabpost Ltd sold the shop and Post Office premises, she was initially told she would transfer to the new owner. But the new owner later objected, and Fabpost Ltd dismissed her.
What went wrong for the claimant
The tribunal found that a TUPE transfer had occurred on the date of sale – 4 August 2022. This meant the claimant's employment automatically transferred to the new owner at that point. Fabpost Ltd was no longer her employer when it sent the dismissal letter on 17 August. Under TUPE, liability for any claims arising from the dismissal passed to the transferee. Because the claimant had not joined the new owner as a respondent, her claims against Fabpost Ltd had to be dismissed.
What the respondent did right
Fabpost Ltd argued that there had been a TUPE transfer and that it was not liable. The tribunal agreed. The respondent had sold the business as a going concern – the freehold, stock, and the intention to continue operating the shop and Post Office. That was enough to trigger TUPE. The claimant's failure to join the transferee meant she could not pursue her claims against Fabpost Ltd.
Why this matters
This case is a reminder that TUPE transfers can happen even in small business sales. Employees who are dismissed after a transfer must carefully identify the correct employer to bring a claim against. If the transferee is not joined as a party, the claim may fail – leaving the employee with no remedy at all.
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