The Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”) provide three concepts, the automatic transfer principle, protection against dismissal in connection with TUPE and the obligation to inform and consult with representatives of affected employees.

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TUPE applies to a “relevant transfer”, which is defined to cover the following two types of event:

  • A transfer of a business, undertaking or part of a business or undertaking where there is a transfer of an economic entity that retains its identity (a business transfer)
  • A client engages a contractor to do work on its behalf, reassigning such a contract or bringing the work “in-house” (a service provision change)

Some transfers will be both a business transfer and a service provision change.

Where a relevant transfer takes place, employees will transfer automatically to the new employer on their existing terms. The new employer will step into the shoes of the former employer. If an employee refuses to transfer, their contract of employment will terminate on the transfer date without dismissal.

TUPE is a complex area of employment law and it is beneficial to take advice before a relevant transfer event occurs. Our employment solicitors have a great deal of experience taking business owners and managers through TUPE. You can rest assured that your business will be in safe hands.

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