TUPE regulations: employer law advice
What employers need to know about TUPE regulations
What is TUPE?
TUPE stands for Transfer of Undertakings (Protection of Employment), meaning it safeguards jobs under certain conditions. These include:
- Business transfers - When a business is sold in its entirety, when part of the business is sold, or in a merger between two companies.
- Service provision changes - When a piece of work previously done in-house is outsourced to a contractor, or vice versa.
To find out whether TUPE regulations apply to your particular situation, clients can call the 24 hour employment law advice line to discuss their circumstances with a professional.
How TUPE regulations affect employers:
If it is decided that your situation requires it, the TUPE law will apply. This means that all employee contracts with the original business owner or service provider (transferor) will be automatically transferred to the new one (transferee). Exactly the same terms and conditions of employment must be maintained.
TUPE rules for the transferor:
- All your affected employees have the right to a TUPE consultation, through a trade union or employee representative
- You must provide the transferee with written information about all the affected staff and their contracts
- Under TUPE, contract terms cannot be altered before the transfer once the employer becomes aware that it will be taking place
TUPE rules for the transferee:
- All terms and conditions of employment must be maintained
- Any accrued holiday entitlement and pension rights must be transferred
- If you need to make redundancies, transferred employees should be considered on a level playing field with original employees, and qualify for the same redundancy payments
It is worth noting that failure to abide by TUPE regulations or not providing a TUPE consultation could result in unfair dismissal claims, or even being taken to employment tribunal. TUPE applies to companies of all sizes – even small businesses – as well as UK transferors whose employees who are based outside of the UK.
