Commercial Transfer Agreement Academy

The DfE has a CTA model and the DfE guidelines confirm that the local authority and the academic trust must sign the CTA before a school can be transformed into an academy. However, in practice, we see a growing reluctance on the part of local authorities to take a CTA. But under these conditions, what happens to employees, assets and contracts? As far as staff are concerned, the absence of cTA will not prevent the new academy from inheriting the staff and any historical responsibility towards them due to the application of the TUPE, but there will be no protection for commitments arising from historical acts of the outgoing employer. This is not particularly satisfactory from the point of view of the Academy, which wishes to ensure that any liability before the transformation remains in the hands of the outgoing employer and that the parties must have a commercial interview to resolve these liability issues. There is no doubt that the absence of CTA will likely make the transformation process more complex and require the parties to conduct a thorough due diligence process and, ultimately, to take a business view of risk. A CTA provides a one-stop shop for transfer and provides security and clarity to all parties involved. The absence of CTA requires that each asset and contract be considered and treated separately in preparation for conversion. This will be a much longer and risky process. With each transformation of the Academy, the transfer of the school`s assets and contracts is usually dealt with in a written document, a CTA.

CTA addresses the issue of risks before and after conversion and who should bear the cost of these risks. In cases where the school is part of a contract covering other schools, the position is more complex and, as such, it may be necessary to award or vary the part of the contract applicable to the new academy. As part of the conversion process, all assets upon conversion should also be transferred to the Academy Trust. This generally covers all real estate, businesses, logos, domain names, rights and assets used or held by the local authority or governing body for the purposes of the school. CTA transfers the legal and economic shares of these assets to the new Academy. In practice, there can be no problem that the new Academy continues to use these assets after the transformation (for example.B. it is unlikely that the local authority will remove the furniture that belongs to it from the school). However, in the absence of a CTA, it is not known what will be physically transmitted.

Another mechanism for the legal transfer of these assets will be necessary to ensure that the right assets are transferred upon conversion and that they are free of any charges. It also requires the parties to carry out clear due diligence in order to identify the transferred assets. Otherwise, the situation is unclear and could subsequently give rise to a costly dispute over the use/ownership of these assets. Can a school be transformed into an academy without a commercial transfer agreement (CTA)? Helen Snow and Sophie Thring look at the topics on which the local authors oppose the conclusion of the contract. The Academy`s transformation process can be a daunting task for each principal, principal, and board of trustees, to assess and understand the practical implications of the Academy`s transformation, as well as identify the steps to be taken to make the transition smooth. . . .