The Transfer of Undertaking (Protection of Employment) (TUPE) is a regulation that protects and secure employees that are under the contract of employment when the business or employer change owner or the business transfers to another owner.
Therefore, employees have legal rights to transfer to the new employer on their existing terms and conditions of employment and with all their existing employment rights and liabilities intact (although there are special provisions dealing with old age pensions under occupational pension schemes)
In addition, when the service provision changes, the TUPE regulations can be applied to protect the employee. For instance:
- A new contractor takes over activities from another contractor (known as ‘re-tendering’).
- A client takes over activities from a contractor (i.e. those activities are ‘in-sourced’).
- A contractor takes over activities from a client (i.e. those activities are ‘outsourced’).
Employers have the obligation to inform and consult their employees about the changes of service provision or transfer of the business. According to the TUPE regulation, the facts that an employee is obliged to know includes:
- The date of the business transfer
- The reason for the business transfer
- The Economic, Social and Legal implications for the affected employees.
If you think a TUPE transfer is about to take place or has taken place, you should seek further advice from us at Monarch Solicitors if you are unhappy or not satisfied about the effect it has on you.
Contact our Litigation Solicitors:
If you would like to enquire about any matters regarding TUPE transfer please complete our online contact form here or send an email to us at [email protected] and one of our solicitors shall call you back.
Alternatively, please call our litigation solicitors in Manchester on 0330 127 8888 for a no obligation discussion.
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The purpose of TUPE is to protect employees if the business in which they are employed changes hands. Its effect is to move employees and any liabilities associated with them from the old employer to the new employer by operation of law. TUPE is an acronym for the Transfer of Undertakings (Protection of Employment) Regulations. TUPE is a significant and often tricky piece of legislation adopted by the UK in order to implement the European Acquired Rights Directive.
TUPE applies every day to an enormous number of different business transactions and it is essential that employers of all sizes understand what employment liabilities can arise. TUPE can apply (to name but a few of many examples) when employers:
- sell or buy part or all of a business as a going concern;
- outsource or make a “service provision change” involving either (a) an initial outsourcing of a service
- grant or take over a lease or licence of premises and operate the same business from those premises.
Employees who are employed in the undertaking which is being transferred have their employment transferred to the new employer. Employees can refuse to transfer (or “object”), but depending on the circumstances of the case, they can lose valuable legal rights if they do. TUPE states that “all the transferor’s rights, powers, duties and liabilities under or in connection with the transferring employees’ contracts of employment are transferred to the transferee”. This all-embracing concept encompasses rights under the contract of employment, statutory rights and continuity of employment and includes employees’ rights to bring a claim against their employer for unfair dismissal, redundancy or discrimination, unpaid wages, bonuses or holidays and personal injury claims etc.
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