Novation Employment Contract Template for England and Wales

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Key Requirements PROMPT example:

Novation Employment Contract

"I need a Novation Employment Contract to transfer an employee from our UK subsidiary to our parent company in Wales, maintaining their existing benefits package but updating their reporting line and job title, with the transfer to be effective from March 1, 2025."

Document background
A Novation Employment Contract is essential when transferring employment relationships between employers in England and Wales. This document is commonly used in corporate restructurings, mergers, acquisitions, or internal reorganizations where employment needs to be transferred to a new entity. Unlike TUPE transfers, novation requires explicit consent from all parties. The contract addresses the transfer of rights and obligations, preserves employment continuity, and can incorporate modifications to existing terms. It provides legal certainty under English law while protecting the interests of all parties involved.
Suggested Sections

1. Parties: Identification of original employer, new employer, and employee

2. Background: Context of the novation and existing employment relationship

3. Definitions: Key terms used throughout the agreement

4. Novation: Core provisions effecting the transfer of rights and obligations

5. Effective Date: Date when novation takes effect

6. Continuing Terms: Confirmation of employment terms that will continue

7. Release and Discharge: Original employer's release from obligations

Optional Sections

1. Modified Terms: Any changes to employment terms, used when terms are being updated

2. Accrued Rights: Treatment of existing employee rights and benefits, used when specific provisions needed for existing benefits/rights

3. Restrictive Covenants: Transfer of existing restrictions or new restrictions, applicable when specific post-employment restrictions apply

Suggested Schedules

1. Original Employment Contract: Copy of existing employment agreement being novated

2. Modified Terms Schedule: Details of any changes to employment terms

3. Benefits Schedule: Details of transferred or new benefits package

4. Pension Arrangements: Details of pension transfer or new arrangements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Employment Rights Act 1996: Primary legislation governing basic employment rights, terms and conditions of employment, protection of wages, and notice periods in England and Wales

TUPE Regulations 2006: Transfer of Undertakings regulations that, while different from novation, provide relevant principles for employee transfers and protection of employment terms

Equality Act 2010: Legislation ensuring protection against discrimination and equal treatment provisions in employment relationships

Common Law Novation Principles: Legal principles governing valid novation including requirements for consent of all parties and discharge of original contract

Working Time Regulations 1998: Regulations governing working hours and holiday entitlement for employees

National Minimum Wage Act 1998: Legislation setting out minimum wage requirements for employees

Pensions Act 2008: Law governing pension obligations including auto-enrollment requirements for employers

Data Protection Act 2018 and UK GDPR: Legislation protecting employee data privacy rights and setting out data protection obligations

Health and Safety at Work Act 1974: Law establishing workplace safety obligations and requirements for employers

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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