TUPE
The Transfer of Undertaking (Protection of Employment) Regulations, widely known as “TUPE”, imposes several obligations and legal implications on businesses during a business sale or acquisition process. Our Employment team has extensive experience advising employees on whether TUPE applies, what a transfer means for their employment rights and continuity, and how TUPE affects their role, terms and conditions, and consultation rights.
We advise employees on their rights and protections under TUPE when a business or service changes hands. Our advice covers whether TUPE applies, what a transfer means for your role, job security and continuity of employment, and how your pay, benefits and other terms are affected. We also support employees with consultation rights, proposed changes to terms, restructures or dismissals connected to a transfer.
Advising on the application of TUPE
We provide clear, practical advice to employees on their rights and protections under TUPE when a business or service changes hands. This includes assessing whether TUPE applies to your situation and explaining what a transfer means for your role, job security and future with the new employer. We advise on continuity of employment, ensuring you understand how your length of service is preserved, and how your pay, benefits, working hours and other contractual terms are affected by the transfer. We also help employees understand their position where changes are proposed, concerns arise about job security, or TUPE protections may not be properly applied, enabling you to make informed decisions and protect your rights.
TUPE consultation rights
We advise employees on their consultation rights where a transfer is proposed, including whether employers have complied with their legal obligations to inform and consult. We provide guidance and support where changes to terms and conditions are proposed, helping employees understand when such changes may be unlawful under TUPE. We also advise on restructures or dismissals connected to a transfer, including whether those dismissals are likely to be automatically unfair and what options are available to challenge them. Our advice is focused on protecting job security, preserving employment rights, and ensuring employees are treated fairly throughout the transfer process.
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Frequently Asked Questions
Find answers to your most pressing questions about our services and processes.
When does TUPE apply?
TUPE generally applies in two main situations:
- Business Transfers: When there is a transfer of an economic entity, or
- Service Provision Changes: When a client changes service providers or brings services in-house, and the activities remain essentially the same.
What does TUPE mean for employers?
TUPE protects employees when a business (or part of it) transfers to a new employer. Employees’ contracts, terms and conditions, and continuity of employment transfer automatically to the new employer, who must honour those arrangements.
Employers involved in a TUPE transfer must also inform and, where required, consult with appropriate employee representatives. They must provide prescribed information about the transfer and take steps to ensure employees’ rights are preserved throughout the process. Because TUPE is technical and the consequences of non‑compliance can be significant, it is advisable for employers to seek legal advice when a potential TUPE situation arises.
What are the consequences for breaching TUPE?
Breaching TUPE can lead to significant employment tribunal claims. A failure to inform and consult affected employees (or their representatives) can result in a protective award of up to 13 weeks’ gross pay per employee.
In addition, any dismissal where the sole or principal reason is the TUPE transfer itself will be automatically unfair, unless the employer can rely on an economic, technical or organisational (ETO) reason entailing changes in the workforce.