What is a TUPE transfer?
A TUPE, Transfer of Undertakings (Protection of Employment) Regulations, is when part or whole of an organisation is transferred to another employer.
There are 2 types of transfers protected under the TUPE regulations:
- Business transfers – This is where a business or part of a business moves from one employer to another.
- Service provision changes – Where a service provided in-house is given to a contractor, a contract has ended and awarded to a new contractor or when a contract ends and the work is transferred in-house.
The regulations apply to organisations of all sizes and protect employees’ rights when the organisation or service they work for transfers them to a new employer.
TUPE transfers can have an impact on a variety of different people:
- The employer who is making the transfer, also known as the outgoing employer.
- There employer who is taking on the transfer, also known as the incoming employer.
- The employees, including any employees remaining with the outgoing employer, the exsisting employees of the incoming employer and those who are transfering.
Why is TUPE important?
Some of the effects of TUPE for an employer transferring and an employer taking on employees under the transfer is:
- The new employer will be automatically liable for certain unpaid liabilities of the employer transferring the employees.
- An automatic transfer of employment for any employee who is employed immediately before the transfer by the business or business unit that is transferred;
- Both the old and the new employer have consultation obligations which vary depending upon the number of affected employees.
If handeled incorrectly then employers could ultimately face legal action being taken against them.
How can we help you with TUPE transfers?
We understand that this may be an unusual scenario with unfamiliar and challenging steps. So, our team are available to advise on the process and framework including what you need to do, how to protect your staff, and ensure the change to your business is supported and executed efficiently.