TUPE

TUPE stands for The Transfer of Undertakings (Protection of Employment) Regulations 2006. TUPE protects employee rights if:

• Your business or part of it changes ownership
• You acquire the assets of another business
• You begin providing services to another organisation
• A service provider to your business changes
• You outsource services to another organisation or take them back in-house.

TUPE applies to public and private sector businesses of all sizes, even if the transfer is between two businesses in the same group. However, TUPE doesn’t apply to share sales, so if you buy or sell the shares in a business, TUPE won’t normally apply. There are two types of TUPE transfer: 

• Business transfers – When a business or part of it changes ownership. The purchased business’s staff become employees of the person or company that buys it.
• Service provision changes – When you outsource services to a contractor, transfer services between contractors, or bring services back in-house. TUPE doesn’t apply for the supply of goods for one off events or short-term work.

If TUPE applies, there are a number of legal obligations that you need to be aware of. Ignoring them could lead to expensive claims and employment tribunal hearings. If you are transferring existing employees to a new employer, you’ll need to:

• Provide the new employer with information about the employees – known as employee liability information
• Provide information to trade union or other employee representative and
• Ask the new employer about any changes that they are proposing to make which may affect the employees.

You may also need to:

• Consult with trade union or other employee representatives
• Consult with all affected employees individually if you are a small business.

If you’re taking on employees from another business or service provider, you’ll need to:

• Provide information to their old employer, ahead of the transfer, about any changes that you are proposing to make which may affect the employees who transfer
• Accept responsibility for employees dismissed because of the transfer
• Honour the contractual terms of employment that you have inherited
• Pay employees with at least 2 years of service a redundancy payment if you do decide to make them redundant
• Consult with employee representatives or trade unions in relation to any of your existing employees who may be affected by the transfer.

The information and consultation process is an important part of TUPE. Not complying with it could lead to awards of up to 13 weeks’ gross pay per employee. We’ll guide you through the TUPE process making sure you follow each step correctly. We can help you inform your employees and their representatives about the transfer, carry out a proper consultation process, and advise on any necessary redundancies. 

Our team will help you tick all the boxes so you can carry on running your business. Our team can also advise on and help you negotiate the wording of the contracts for the transfer of your staff, to ensure that you get the best possible protection for your business.

We guide you through every stage of the process, from planning and consultation to handling disputes, ensuring your transfer is compliant and minimises the risk of claims.