Search

How can we help?

Business Employment

TUPE

 

From sales or purchase of a company to a change in cleaning contractor or IT services provider, our experienced employment lawyers can advise on the effect of Transfer of Undertakings (TUPE) and what it could mean for your business. 

The purpose of TUPE is to protect employees if their employer changes hands. The effect of TUPE is to automatically transfer the employees, along with all rights and any liabilities associated with them, from the old employer to the new employer. 

TUPE can apply to employers of all sizes from the sole trader employing one part-time member of staff to multinational corporations. It covers an enormous number of different business transactions and, if it isn’t followed correctly, you could be left with significant liabilities and penalties. 

We offer clear, practical and jargon free support so that you can get to grips with TUPE and manage the process and expectations of those affected. 

An exceptional balance of expertise and personality.”

Legal 500

FAQs – TUPE

TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations 2006 which aim to protect employees when the business in which they work changes hands or there is a change of service provider.

If TUPE applies, the transferee (i.e. the new incoming business owner or service provider) takes on some of the rights and liabilities associated with the employees who were employed by the transferor (i.e. the old business owner or service provider).

The contracts of employment for employees employed by the transferor (i.e. the old business owner or service provider) and assigned to the ‘organised grouping of resources or employees that is subject to the relevant transfer’ will transfer automatically to the transferee (i.e. the new business owner or service provider) and continue unchanged, with the exception of some old age, invalidity and survivor benefits under occupational pension schemes.

Yes.  Transferors are obliged to provide certain information (known as Employee Liability Information) about the transferring employees to the transferee at least 28 days before the transfer takes place.  This includes the identity and age of the employees and certain information relating to the employees’ employment terms, disciplinaries, grievances, claims and collective agreements.

For TUPE to apply, there must be a change of employer.  A genuine transfer of shares involves a change in the ownership of share capital only, not a change of employer, so TUPE would not apply.  However, there may be TUPE transfers surrounding the share sale, for example if assets are moved around in preparation for the share sale or if after the transfer another company (such as a parent company) takes over the day to day running of the company.

Transferors are required to provide certain information to ‘appropriate representatives’ of their affected employees.  If there are no representatives and, after being given an opportunity to elect representatives following a reasonable timeframe they fail to do so, the information must be provided to the affected employees themselves.

This information includes:

  • The fact that a transfer is to take place, the date or proposed date of the transfer and the reasons for it;
  • The legal, economic and social implications of the transfer for any affected employees;
  • The measures, which it envisages it will, in connection with the transfer, take in relation to any of its affected employees (if no measures are envisaged it should state that);
  • The measures, in connection with the transfer, that it envisages the other party will take in relation to its affected employees (if no measures are envisaged it should state that); and
  • Suitable information relating to the use of agency workers e.g. the number of agency workers working for it, the parts of the business where they work and the type of work being carried out.

Transferors are also required to provide certain information (known as ‘Employee Liability Information’) to the transferee at least 28 days prior to the transfer.  This includes the identity and age of the employees and certain information relating to the employees’ employment terms, disciplinaries, grievances, claims and collective agreements.

No, not on TUPE alone. TUPE operates to preserve employees’ existing terms and conditions, not to enhance them.   There may be circumstances where employees are able to rely on TUPE in conjunction with something else, like equal pay legislation, to request enhanced terms but this will be dependent on the circumstances in each case.

The transferor must provide certain information about the transfer to the appropriate representatives “long enough before the relevant transfer to enable the employer of any affected employees to consult the appropriate representatives of any affected employees”.

Key contacts

Monica Atwal

Managing Partner

View profile

+44 118 960 4605

Read, listen and watch our latest insights

art
  • 14 March 2024
  • Employment

The impact of technology-dependent Gen Z on the workplace – Amanda Glover writes for Business Voice magazine

In Business Voice magazine, Amanda Glover, Associate at Clarkslegal writes about the impact of Gen Z sharing details of their work woes on social media and how organisations should respond.

art
  • 08 March 2024
  • Employment

The Labour Party proposes extensions to discrimination law

With a general election to come in 2024, it is vital that employers keep up to speed with the proposals of both major parties that are likely to affect the day-to-day operation of their business. 

art
  • 27 February 2024
  • Employment

Changing Attitudes to Menopause

We have set out some answers to the frequently asked questions that employers ask when considering how to support a menopausal employee.

art
  • 22 February 2024
  • Employment

Time to take the heat off menopausal women

On 22 February 2024, the EHRC released guidance and resources for employers designed to help employers understand their legal obligations in relation to supporting workers experiencing menopausal symptoms.

Pub
  • 22 February 2024
  • Employment

Talking Employment Law: What to do if you’re at risk of redundancy

In this podcast, Harry Berryman and Rebecca Dowle, members of the employment team, will talk through the steps that need to be taken for a redundancy to be fair and the range of criteria that can be used when determining which employees will be made redundant.

art
  • 12 February 2024
  • Employment

The World of Work in 2024- What Can HR Expect?

In many senses, 2024 is unlikely to be a year with radical ruptures from those that have gone before it. The significance of 2024 though, is that it is likely to build upon those megatrends impacting the world of work, which have been emerging for some time now and are only likely to strengthen as we move on in time.

Clarkslegal’s innovative approach to solving complex cases is consistent; their quality standards are extremely high and their staff are efficient and friendly – overall 11/10!”

Carrol Douglas-Welsh, Head of Employee Relations – Scottish and Southern Energy