ExpertThis 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 50 · 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.
Instead of cutting pay, MegaTech decides to make three CodeStream developers redundant because of duplicated roles. Which TWO of the following factors are used to calculate statutory redundancy pay?
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.
Instead of cutting pay, MegaTech decides to make three CodeStream developers redundant because of duplicated roles. Which TWO of the following factors are used to calculate statutory redundancy pay?
Answer options:
The employee's age.
The employee's gender.
The employee's length of continuous service.
The financial profitability of MegaTech PLC.
How to approach this question
Full Answer
Common mistakes
Practice the full ACCA LW — Corporate and Business Law Practice Exam 4
60 questions · hints · full answers · grading