TUPE

TUPE stands for Transfer of Undertakings (Protection of Employment). It is a set of regulations in the United Kingdom that are designed to protect the employment rights of employees when their business, or part of it, is transferred to a new employer.

TUPE generally applies in two main situations:

• Business Transfers: When there is a transfer of an economic entity
• Service Provision Changes: When a client changes service providers or brings services in-house, and the activities remain essentially the same

TUPE provides protection to employees during the transfer process. Their employment contracts, terms, and conditions are generally protected, and the new employer is required to honour these arrangements.

Employers involved in such transfers have specific obligations, including informing and consulting with employee representatives, providing information about the transfer, and ensuring that employees’ rights are preserved through the process. It’s advisable for employers to seek legal advice to ensure compliance with TUPE regulations when facing situations where the regulations may apply.

Breaching the TUPE regulations can give rise to a number of potential claims. An employment tribunal can award up to 13 weeks’ gross pay for failure to inform and consult with employees. Any dismissal for which the sole or main reason related to the TUPE transfer would be considered an automatically unfair dismissal.