Business Transfers & TUPE

Business Transfers & TUPE

When a business changes owner, its employees may be protected under the Transfer of Undertakings (Protection of Employment) regulations (TUPE). This is a complicated area of law and serious penalties can apply where correct procedures are not followed, it is therefore the responsibility of the business owner to make themselves aware of their obligations.

TUPE protection applies to all employees of large or small businesses in the UK, and provides the following protection to transferee employees:

  • Continuity of employment must be maintained
  • Job roles usually transfer over to the new company – the only exceptions would be if the role is being made redundant or where the business is insolvent
  • Employment contracts and terms and conditions transfer

The are two types of business transfers that TUPE regulations apply to:

Transfer of Business: This is where a business or part of a business changes from one employer to another, or two companies combine to form one business entity.

Service Provision Changes: This protects the clients and contractors who provide services to the business which is transferring, e.g. cleaners, workplace caterers.

It is vitally important that employers follow the correct procedures with regards to TUPE regulations and are fully aware of the potential risks and liabilities they are exposed to. Our team of specialist Employment Solicitors can help you through this and explain your legal position clearly, ensuring your protection from potential employment tribunals.

For further information please contact a member of the Employment team.