Understanding TUPE Regulations

Table of Contents

• What is TUPE?
• What is the TUPE consultation process?
• Can the transferee change the terms of an employment contract under TUPE?
• Get expert legal advice

What is TUPE?

The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) provides important protection for workers of businesses moving to new ownership or where there is a change of service provider. It ensures that staff members being transferred from an old employer to a new employer as part of a merger or acquisition retain their existing terms of employment, and changes to their terms can only be made in limited circumstances.

What is the TUPE consultation process?

Like redundancy, businesses considering a transfer of ownership and staff must undertake a consultation process with the affected employees or their representatives. Employees should be informed of the following information:

• That the transfer of staff from one business to another is happening and why
• When the transfer is likely to occur
• How the transfer will affect them
• Where they are likely to be placed within the new business
• How many agency workers are being used, and the type of work they are performing

It is imperative that this consultation process be carried out correctly and in accordance with the law. In some cases, it may be necessary to hold an election to determine who should be representatives.

Can the transferee change the terms of an employment contract under TUPE?

The transferee can only make changes to an employment contract of a newly transferred employee in very limited circumstances. According to the TUPE regulations, the transferee must take on the transferring employees with their existing terms of employment, but they may be able to make a change if:

• The variation of employment terms is for an Economic, Technical, or Organisational (ETO) reason
• The terms of the contract allow the employer to make the particular variation

If you are unsure if you have a valid ETO reason, it is always advisable to discuss the matter with an employment law Solicitor who can advise you based on your unique circumstances.

Get expert legal advice

If you are an employer or employee involved in a business transfer, it is imperative to understand the TUPE regulations and the latest case law to ensure that your legal rights are protected. Our Employment Lawyers can advise you on any key aspects of your business transfer, including the TUPE process and whether there is a valid ETO reason for contract variation or dismissal.

To instruct one of our Employment Law Solicitors, please fill in our contact form or email us at [email protected].