TUPE for Business
Transfer of undertakings protection from employment (TUPE)
TUPE is the “Transfer of Undertakings (Protection of Employment) Regulations 2006” which was amended by the “Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014”. The TUPE rules apply to organisations of all sizes and protect employees’ rights when the organisation or service they work for transfers to a new employer.
TUPE has an impact on both employers and employees in the following circumstances.
Business transfers – TUPE regulations apply if a business or part of a business moves to a new owner or merges with another business to make a brand new employer. A part of a business might for example be the distribution function of a larger organisation.
Service provision transfers – TUPE regulations apply in the following situations, a contractor takes over activities from a client (known as outsourcing), a new contractor takes over activities from another contractor (known as re-tendering) and/or a client takes over activities from a contractor (known as in sourcing).
When TUPE applies, the employees of the outgoing employer will automatically become employees of the incoming employer at the point of transfer. They carry with them their continuous service from the outgoing employer, and should continue to enjoy the same terms and conditions of employment with the incoming employer. Following a transfer, employers often find they have employees with different terms and conditions working alongside each other and wish to change/harmonise terms and conditions. However, TUPE protects against change/harmonisation for an indefinite period if the sole or principal reason for the change is the transfer. Any such changes will be void.
If you are business who is looking to sell or merge, or, looking to purchase another business, its important you take advice on the impacts TUPE will have on you. At Hill & Abbott Solicitors our team can guide you through the myriad of legislation and make the whole process less stressful.