TUPE Transfers
TUPE transfers managed correctly from both sides.
TUPE is one of the most technically complex areas of employment law. Whether you are acquiring a business or transferring a service, getting it wrong carries significant risk. We guide you through it.
Before You Set Off
Picking Up the Pace
Maintain Momentum
Shifting Up a Gear
Bumps in the Road
Changing Direction
When does TUPE apply?
TUPE applies in two situations: a business transfer, where an economic entity retains its identity after being transferred from one employer to another; and a service provision change, where a service is outsourced, brought back in-house, or transferred to a new contractor.
The question of whether TUPE applies is not always straightforward. The wrong answer, in either direction, can be costly. We advise on this question before any other step is taken.
Information and consultation
Before a TUPE transfer, the employer must inform employee representatives of: the fact of the transfer, when it is happening, the legal, economic, and social implications for the employees, and any measures intended to be taken in relation to the employees.
If measures are proposed that will affect the employees, there is an obligation to consult with representatives, not merely inform them. Failure to inform and consult correctly can result in a protective award of up to 13 weeks' pay per employee.
Changing terms after a transfer
One of the most common mistakes made in TUPE situations is attempting to harmonise terms and conditions after the transfer. In most cases, this is not permitted. Terms that were in place before the transfer cannot be changed simply because of the transfer, even with the employee's agreement.
There are limited circumstances in which changes can be made, and we will advise on what is and is not permissible in your specific situation.
What is TUPE?
TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations 2006. It applies when a business or part of a business transfers from one employer to another, or when a service changes hands between service providers.
The key effect of TUPE is that employees transfer automatically to the new employer with their existing terms and conditions intact. They cannot be dismissed simply because the transfer is taking place. And there are specific information and consultation obligations that must be met before the transfer.
Common Questions
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