Whether you are buying or selling businesses, the transfer of staff is a very important issue that needs addressing. This is due to the complex and ever changing TUPE (Transfer of Undertakings, Protection of Employment) regulations.
The purpose of TUPE is to protect the rights of employees when the company they work for is taken over by another business, or if a company undergoes a restructure of its operations.
Our expert employment solicitors have many years’ experience in advising business owners on the issues they are faced with when going through a transactional period, or acquiring a new business.
We work closely with our corporate team on all large scale transactions, meaning you will receive expert commercial advice.
The Impact Of TUPE - What It Means
The effect of TUPE is a major challenge for businesses involved in an acquisition, disposal or outsourcing.
TUPE provides employees with enhanced protection from dismissal or changes to their terms of employment. It also provides staff with the right to be informed and consulted in relation to the transfer of their employment.
The Transfer Of Staff
Beyond the impact of TUPE, understanding the workforce issues on a corporate transaction is often a key component of a successful deal. Identifying and removing risks through due diligence reporting is vital.
On outsourcing transactions, you will want to ensure a smooth transfer of your staff and fully understand the impact of TUPE. You will also want to consider the arrangements that apply to staff at the end of the contract, including appropriate warranties and indemnities.
Our Experience In TUPE
We help to manage employee relations and ensure that all transactional documents are consistent and drafted to achieve our client’s commercial aims. We also provide advice on how to use the law to your advantage, negotiating appropriate warranties and indemnities to protect your interests, as well as advising you on the difficult area of changing terms and conditions following a TUPE transfer.
Why Choose Irwin Mitchell?
Whatever transaction you are undertaking, we have a wealth of experience in corporate transactional support work. We can help you with:
- Due diligence reporting
- Strategic and structural advice
- The impact of TUPE on acquisitions/disposals
- Service provision changes
We have particular experience in outsourcing and off-shore transactions, with a specialist outsourcing group available which includes a team of commercial, employment, pensions and tax lawyers, to ensure you have a full team of experts behind you.
Recent TUPE Work
Our team works with many clients on TUPE and corporate transactions every year. We have recently advised:
- A large facilities management company on the acquisition of a business out of administration. The transaction involved the TUPE transfer of over 500 staff and was completed in two weeks despite involving employment due diligence for over 500 employees. We also advised on the strategy for bringing across the former senior members of staff including Directors.
- A private bank’s HR and senior management team on the outsourcing of its IT and Operations functions to two offshore service providers. This involved providing strategic advice on TUPE and negotiating and drafting the employment provisions in the outsourcing agreements. It also included advice to the HR team on how to communicate and manage collective redundancies.
- A multinational property business on the disposal of one of its divisions to a limited liability partnership. This included advising on the application of TUPE on the transfer from a strategic perspective and advising on the obligations on the client to inform and consult. We also advised on issues relating to the redeployment of staff, negotiation of settlement agreements and the TUPE ‘opt out’ agreements for senior employees.
"Very client-focused, available, forthright and achieve resolutions we're happy with." - Chambers & Partners, 2016 (quote from client)
"The team acts commercially and pragmatically with a good balance between the legal aspects and helping us achieve our goals from a business point of view." - Chambers & Partners, 2015 (quote from client)
"I always get clear advice and the best options in terms of the way forward, with good risk assessment on the particular issues." - Chambers & Partners, 2015 (quote from client)