What is TUPE?

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TUPE is the Transfer of Undertakings (Protection of Employment) Regulations 2006. It is a law that protects the rights of employees when:

  • A business or part of a business is sold or transferred to another employer.
  • A service is outsourced, insourced or switched from one provider to another.

TUPE applies to employees of businesses in the UK, regardless of the size of the business or the sector or industry it operates in. The part of the business that is transferring must be in the UK, but the head office can be in another country.

When TUPE applies, it means that:

  • The employees’ jobs automatically transfer to the new employer or provider.
  • The employees’ terms and conditions of employment remain the same.
  • The employees’ continuity of service is maintained.
  • The employees’ collective agreements are preserved.
  • The employees have the right to be informed and consulted about the transfer.
  • The employees have the right to object to the transfer if they wish.
  • The employees have the right to protection from dismissal or detriment because of the transfer.

TUPE also imposes certain obligations on both the old employer (the transferor) and the new employer (the transferee), such as:

  • The transferor must provide information about the employees and their rights and liabilities to the transferee before the transfer.
  • The transferee must not make any changes to the employees’ terms and conditions of employment without a valid reason.
  • The transferee must recognise any trade unions or employee representatives that the transferor recognised.
  • The transferee must honour any contractual or statutory payments due to the employees, such as wages, holiday pay, sick pay, and redundancy pay.

TUPE is a complex area of law, and there may be exceptions or variations depending on the circumstances of each case. Therefore, you should contact me for legal advice if you are involved in a TUPE transfer as an employee or an employer.

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