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.
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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
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
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
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