What is TUPE?

TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations 2006. These regulations were introduced in the UK due to the Acquired Rights Directive and it is aimed at protecting employees when a business is transferred.

TUPE applies when there is a relevant transfer. A relevant transfer could be when there is a transfer (e.g. a sale) of a business or part of a business, or when there is a service provision change (e.g. a service is outsourced, brought back in-house, or a there is a change in provider).

If TUPE applies, employees automatically transfer and are given certain protection such as protection against dismissal in some circumstances if the sole or principal reason for the dismissal is the transfer itself.

There will also be obligations on the current employer and the new employer to inform and consult with the employees. A failure to comply with TUPE provisions on informing and consulting can lead to claims in the Tribunal and compensation of up to 13 weeks’ pay for each affected employee.

If you are dealing with a transfer that could be caught by TUPE, please do contact us for advice . Our Commercial department can also help with business transfers. You can contact us on 01730 268211 or at linda.wilson@macdonaldoates.co.uk, or kevin.smith@macdonaldoates.co.uk.