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Associated employer
Practical Law UK Glossary 7-107-6444 (Approx. 3 pages)
Glossary
Associated employer
Two employers where:
- One is a company of which the other (directly or indirectly) has control; or
- Both are companies of which a third person (directly or indirectly) has control.
(Section 231, Employment Rights Act; section 297, Trade Union and Labour Relations (Consolidation) Act 1992; section 79, Equality Act 2010.)
"Control" means the holding of the majority of voting power at shareholders’ meetings. If an employee leaves their job and is employed by an employer who is associated with that first employer, continuity of employment is preserved. The periods of employment with both the original employer and the associated employer will count towards the employment period.
For further information, see Practice note, Continuity of employment: Associated employers.