TUPE under the spotlight: government launches call for evidence

What are the current rules?

The Transfer of Undertaking (Protection of Employment) Regulations 2006 ('TUPE') protect employees when there is a ‘relevant transfer’, which includes:

• Business transfer: where a business (or part of it) transfers and continues operating in a recognisable way
• Service provision change: where services are outsourced, moved between contractors, or brought back in-house. 

If TUPE applies, employees assigned to the transferring business or service automatically move from the old employer (the ‘transferor’) to the new employer (the 'transferee') on their existing terms (except for certain occupational pension rights). The transferee can only change these terms in limited circumstances, for example, where there is an economic, technical or organisational reason (ETO reason) involving changes to the workforce. 

The law treats a dismissal as automatically unfair if the main reason is the transfer. However, employees must still have enough service to bring a claim (currently two years, reducing to six months from 1 January 2027). If the dismissal is for an ETO reason entailing a change to the workforce, it will not be automatically unfair, but the usual unfair dismissal rules apply. If an employer commits a serious breach of contract or makes substantial detrimental changes, and the employee resigns, the law treats this as a dismissal and TUPE protections apply.  

Both the transferor and transferee must inform representatives (or in limited circumstances, the affected employees themselves) about the transfer and consult about any proposed changes to terms ('measures'). The transferor must also give the transferee key information ('employee liability information') at least 28 days before the transfer.

What is the government seeking views on?

The government's call for evidence on Transfer of Undertaking (Protection of Employment) Regulations is asking for views on how well TUPE works in practice. In particular, it asks how effectively TUPE balances employers' needs with the protection of employees' rights and the extent to which those rights are protected during a transfer. It considers how well employees are informed and consulted, and how clear the rules are on when a ‘relevant transfer’ takes place and TUPE applies. 

The review also looks at the overall TUPE process. It invites feedback on what works well, the issues that arise in practice, and how difficult employers find the process to manage. A key focus is whether the process could be simplified and made more efficient without reducing employee protection. 

There is a further focus on the rules limiting changes to employees' terms after a transfer. In particular, it seeks views on whether the current ETO test strikes the right balance between business needs and employee protection, and how clear and workable those rules are in practice. 

Finally, it considers the overall cost and impact of TUPE transfers, including whether the financial burden on businesses is proportionate.

Next steps

The call for evidence closes at 11:59pm on 1 July 2026. The government will then review the responses and use them to develop policy proposals. It has said it will consult on any proposed changes to the TUPE regulations in due course. 

If you have experience of a TUPE transfer, whether as a transferor or transferee, this is an opportunity to share your views. You can share your experience of how the regulations work in practice and help shape any future changes.

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