TUPE Meaning: A Guide for UK Employers

For employers, TUPE means taking on the responsibility to protect employees’ rights during a business transfer, ensuring that their existing terms and conditions of employment are maintained. It involves careful planning, clear communication with all parties involved, and compliance with legal obligations to prevent disputes and secure an effective transition for both the organisation and its workforce.

The Transfer of Undertakings (Protection of Employment) Regulations, commonly known as TUPE, govern how certain transactions, such as mergers, acquisitions, outsourcing, or any form of business transfer, must be handled from an employment law perspective.

Under the provisions of TUPE, when a business changes hands, the employees of that business are transferred to the new employer with their existing terms and conditions of employment intact.

From an employer’s perspective, TUPE presents considerable risk, both in legal terms and in ensuring a smooth transition that does not damage morale or relations with affected employees.

In this guide, we explain the meaning of TUPE, and the obligations it imposes on employers before, during and after a business transfer. Whether you are acquiring a new business, selling part of your company, or taking on outsourced services, this guide will help you understand how to handle the transfer process in compliance with the law.

You can read our Comprehensive TUPE Guide for UK Employers here >>

 

Section A: What is TUPE?

 

TUPE was first introduced in the UK in 1981, deriving from the European Union’s Acquired Rights Directive, which aimed to protect employees in the event of a business transfer. The regulations were updated substantially in 2006 and later in 2014 to address emerging business practices and provide clearer guidelines for employers and employees.

The fundamental purpose of TUPE is to safeguard employees from unfair dismissal or unfavourable changes to their employment terms when the business they work for undergoes a transfer.

 

1. TUPE Meaning

 

The Transfer of Undertakings (Protection of Employment) Regulations, or TUPE, protect employees’ rights during business transfers. TUPE ensures that when a business or service changes ownership, employees who work for that business are transferred to the new employer and their existing terms and conditions of employment are maintained.

TUPE is part of UK employment law and applies to any situation where an “undertaking” is transferred from one employer to another. The regulations impose specific obligations on both the outgoing (transferor) and incoming (transferee) employers. These obligations include the duty to inform and consult employees or their representatives about the transfer, maintain existing terms and conditions of employment, and protect employees from dismissal due to the transfer itself.

The legal framework of TUPE is designed to balance the rights of employees with the operational needs of businesses. For employers, compliance with TUPE means ensuring that the transfer process is handled transparently and legally, with careful attention to the preservation of employee rights.

 

2. What is an “Undertaking” and “Relevant Transfer”?

 

Two key concepts underpin TUPE: “undertaking” and “relevant transfer.”

In the context of TUPE, an “undertaking” refers to the business or service that is being transferred. This can include an entire business, a part of a business, or a specific service, such as catering or IT support, that is outsourced to another company. The undertaking must have an economic entity, meaning it is organised and identifiable as a distinct unit.

A “relevant transfer” occurs when an undertaking (or part of it) is transferred from one employer to another. This can happen through the sale of a business, a merger, or a change in service providers. A relevant transfer triggers the application of TUPE, meaning that employees associated with the undertaking automatically transfer to the new employer with their employment rights intact.

 

3. Failing to Comply with TUPE Regulations

 

Failure to comply with TUPE obligations can have severe consequences for employers.

If employees are dismissed in connection with a TUPE transfer without a valid ETO reason, they can bring claims of unfair dismissal against the employer. This can result in significant compensation awards and damage to the employer’s reputation.

If the new employer changes the terms and conditions of employment post-transfer without proper consultation or agreement, employees may bring claims for breach of contract. This could lead to costly legal battles and potential financial penalties.

Employers who fail to properly inform and consult employees or their representatives may face claims from the affected employees. The Employment Tribunal can award compensation of up to 13 weeks’ pay per affected employee if it finds that the employer did not fulfil its consultation obligations.

In some cases, both the outgoing and incoming employers may be held jointly liable for any breaches of TUPE. This underscores the importance of both parties fully understanding and complying with their legal obligations during the transfer process.

 

Section B: When Does TUPE Apply?

 

TUPE is triggered under specific circumstances, or ‘relevant transfers’ when the ownership or management of a business or a service is transferred from one entity to another. For employers, identifying these scenarios ensures that the transfer process is managed legally and that employees’ rights are protected.

You can read our extensive guide to When Does TUPE Apply? here >>

 

1. Scenarios Where TUPE is Relevant

 

TUPE typically applies in three main scenarios:

 

a. Business Sales or Transfers

TUPE is most commonly associated with the sale or transfer of a business. When a business or part of a business is sold, the employees working within that business unit are transferred to the new owner under their existing terms and conditions. For example, if a retail chain sells one of its stores to another company, the staff employed at that store would typically transfer to the new owner with their existing contracts, benefits, and employment rights intact.

 

b. Outsourcing

TUPE also applies in cases of outsourcing, where a company contracts out a service to a third-party provider. For instance, if a manufacturing company decides to outsource its IT support to an external provider, the employees currently providing IT services may be transferred to the new provider under TUPE regulations. This ensures that the employees’ terms of employment are preserved despite the change in their employer.

 

c. Service Provision Changes

A similar scenario occurs when there is a change in service provision, such as when a contract for a particular service is awarded to a new provider. This can happen, for example, in the cleaning industry, where a client might switch cleaning contractors. Under TUPE, the employees of the outgoing contractor who were assigned to the contract would transfer to the incoming contractor, maintaining their current employment terms.

 

2. TUPE Transfer Case Studies

 

The following are examples of scenarios when TUPE would apply:

 

a. Sale of a Manufacturing Plant

A large manufacturing company sells one of its plants to a smaller competitor. The plant employs 200 workers who are integral to its operations.

Under TUPE, the sale of the plant constitutes a relevant transfer. The new owner must take on the 200 employees under their existing employment contracts, including all terms related to pay, holidays, and benefits. The selling company (the transferor) is responsible for informing and consulting the employees about the transfer, while the buying company (the transferee) must ensure continuity of employment post-transfer.

 

b. Outsourcing of Catering Services

A large hospital outsources its catering services to a specialist catering company. The hospital’s catering staff, who are employees of the NHS, are affected by this change.

The outsourcing of the catering function triggers TUPE. The catering staff will transfer from the NHS to the catering company. Their contracts, pay rates, and other employment terms remain unchanged despite the change in employer. The catering company must honour these terms and cannot make detrimental changes solely because of the transfer.

 

c. Change of Cleaning Contractor

An office building management company changes its cleaning contractor from Company A to Company B. The same team of cleaners has been servicing the building for years.

When the contract is awarded to Company B, TUPE dictates that the cleaners should transfer to Company B under their existing contracts. Company B is legally required to maintain their pay, working hours, and other employment conditions. This ensures that the cleaners’ jobs are protected and that they do not suffer a detriment due to the change in contractors.

 

Section C: Employer Obligations Under TUPE

 

When a business or service is transferred from one employer to another under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE), both the outgoing and incoming employers have significant legal obligations to ensure the process is handled fairly and in compliance with the law.

Employers involved in a TUPE transfer must adhere to several key legal responsibilities, including:

 

1. Preservation of Employment Terms and Conditions

 

The most fundamental obligation under TUPE is that the new employer (transferee) must take on the transferring employees with their existing terms and conditions of employment unchanged. This includes preserving all aspects of their contracts, such as pay, working hours, holiday entitlements, and any benefits. The new employer cannot unilaterally change these terms post-transfer without risking a breach of TUPE regulations.

 

2. Duty to Inform and Consult Employees

 

Both the outgoing (transferor) and incoming (transferee) employers are required to inform and consult the affected employees or their representatives about the transfer. This process is vital for ensuring transparency and providing employees with the opportunity to understand how the transfer will affect them.

Employees or their representatives must be informed of the fact that a transfer is taking place, the date of the transfer, and the reasons for it. Employers must also communicate the legal, economic, and social implications of the transfer for the employees, such as potential changes to working conditions or job roles.

If the transfer involves any “measures” (changes to the workforce) that will affect the employees, the employer must consult with the employees or their representatives in advance. This consultation should be meaningful, allowing employees to express their concerns and ask questions. Employers must consider and respond to employee feedback, potentially modifying their plans based on the consultation process.

When informing and consulting employees, employers must engage with appropriate employee representatives. If a recognised trade union is in place, the employer must consult with its representatives. If there is no trade union, the employer must arrange for the election of employee representatives specifically for the TUPE transfer consultation.

The consultation process should be conducted in good faith and with enough time for the representatives to discuss the transfer with the employees they represent. Employers should provide all relevant information in writing and allow adequate time for consultation before the transfer takes place.

 

3. Employee Liability Information (ELI)

 

The outgoing employer must provide the incoming employer with specific employee liability information at least 28 days before the transfer. This includes details such as the identities of the employees being transferred, their employment terms, and any ongoing disciplinary actions or grievances. This allows the incoming employer to prepare adequately for the transfer.

 

4. Protection Against Dismissal

 

Under TUPE, employees cannot be dismissed solely because of the transfer. Any dismissals made in connection with the transfer are automatically deemed unfair unless they are for economic, technical, or organisational (ETO) reasons that entail changes to the workforce. Employers must be cautious when making any post-transfer changes that could lead to redundancies or dismissals.

 

Section D: TUPE Transfer Process

 

TUPE requires that employers follow a structured process before, during, and after the transfer. The TUPE process is designed to protect employee rights while minimising disruption during the transfer.

 

1. Step-by-Step Guide to Managing a TUPE Transfer

 

The TUPE transfer process can be divided into three key phases: pre-transfer, during the transfer, and post-transfer. Each phase involves specific actions that employers must take to comply with the regulations and ensure a successful transfer.

 

Step 1: Pre-Transfer

Determine which part of the business or service is being transferred and identify the employees who will be affected. This typically involves assessing which employees are assigned to the transferring business or service.

The outgoing employer (transferor) must compile and share employee liability information with the incoming employer (transferee) at least 28 days before the transfer. This includes details about employees’ contracts, employment terms, disciplinary records, and any ongoing grievances.

Begin the process of informing and consulting with employees or their representatives about the upcoming transfer. Provide details about the transfer, including the date, reasons, and potential impact on employees. Engage in meaningful consultation, addressing any concerns raised by employees.

Both employers should coordinate the logistics of the transfer, including the handover of responsibilities, communication strategies, and any potential changes to operations or management structures.

 

Step 2: During the Transfer

On the day of the transfer, the affected employees move from the outgoing employer to the incoming employer. This includes the automatic transfer of their contracts, rights, and obligations under TUPE.

The incoming employer must ensure that all transferred employees continue under their existing terms and conditions of employment. This includes maintaining their pay, benefits, and other contractual rights.

During the transfer, manage the secure transfer of employee data, ensuring compliance with data protection laws. This includes the safe handling of personal records, contracts, and any other sensitive information.

 

Step 3: Post-Transfer Actions

The incoming employer should focus on integrating the transferred employees into the new organisation. This might involve onboarding processes, training, and introducing them to new systems or procedures.

If the incoming employer needs to make changes to the workforce or employment terms post-transfer (for example, due to economic, technical, or organisational reasons), these should be handled carefully and in consultation with employees to avoid breaches of TUPE.

Continue to engage with the transferred employees to ensure they are settling in well and to address any ongoing concerns or issues that arise after the transfer.

 

Step	Action	Responsible Party	Timeframe
Identify Affected Employees	Determine which employees are involved in the transfer	Transferor and Transferee	As early as possible
Provide Employee Liability Information	Share required data about transferring employees	Transferor	At least 28 days before transfer
Employee Consultation	Inform and consult employees about the transfer	Transferor and Transferee	Throughout the process
Transfer of Employment Contracts	Automatically transfer employee contracts to the new employer	Transferor to Transferee	On the day of transfer
Integration and Onboarding	Integrate transferred employees into the new organization	Transferee	Immediately post-transfer

 

2. TUPE Transfer Checklist

 

The following checklist highlights employers’ key actions and responsibilities during the TUPE process:

 

TUPE Phase	Responsibility/Action
Pre-Transfer	Identify affected employees and the scope of the transfer
	Gather and share employee liability information
	Inform and consult employees and/or their representatives
	Plan logistics and communication strategies
	Prepare data and contract transfer plans
	Engage legal and HR advisors early
	Coordinate with the incoming/outgoing employer
During Transfer	Ensure smooth transfer of employees and their contracts
	Maintain continuity of employment terms
	Securely manage the transfer of employee data
	Monitor the transfer process for any issues
	Provide support to employees during the transition
Post-Transfer	Integrate employees into the new organization
	Communicate regularly with transferred employees
	Address any required changes through proper consultation
	Review the process to ensure compliance and identify areas for improvement
	Follow-up on any outstanding issues or employee concerns
	Monitor employee adaptation and provide additional support as needed

 

3. Managing Employee Data and Contracts During the Transfer

 

Both TUPE and data protection regulations impost specific legal obligations on employers when handling and managing employee data in connection with a relevant transfer.

 

a. Data Transfer

The outgoing employer should securely transfer all relevant employee data to the incoming employer. This includes personal records, employment contracts, payroll information, and any records of disciplinary actions or grievances. The data should be transferred in compliance with the General Data Protection Regulation (GDPR), ensuring that it is done securely and only shared with authorised individuals.

 

b. Contracts of Employment

The incoming employer inherits all the employment contracts of the transferring employees. These contracts must be honoured in full, including all terms related to pay, benefits, working hours, and job roles. The incoming employer should review these contracts carefully to understand their obligations and avoid any inadvertent breaches.

 

c. Updating Records

Post-transfer, the incoming employer should update their records to reflect the new employees and integrate this data into their HR systems. This includes ensuring that all payroll, benefits, and pension arrangements are correctly updated to prevent any disruptions to employee compensation.

 

Section E: Redundancies and Contract Changes Under TUPE

 

While TUPE provides considerable protection for employees during business transfers, there are situations where employers may need to make redundancies or adjust employment contracts post-transfer.

However, there are legal implications when making redundancies under TUPE and when making changes to employment contracts after a transfer. This can result in disputes or grievances from transferred employees, requiring careful handling by employers.

 

1. Legal Risks of TUPE Redundancies

 

Under TUPE, making redundancies is a sensitive issue because the regulations are designed to protect employees’ jobs during and after a transfer. However, redundancies may be necessary in certain circumstances, particularly for economic, technical, or organisational (ETO) reasons.

 

ETO Reason	Description	Example
Economic Reason	Changes made for financial reasons	Reducing workforce due to decreased demand for products/services
Technical Reason	Changes required by technological advancements	Automation of tasks leading to role redundancy
Organisational Reason	Structural changes in the organisation	Merging departments resulting in overlapping roles

 

a. Prohibition on Redundancies Solely Due to Transfer

TUPE prohibits dismissals that are made solely because of the transfer itself. Any such dismissal is automatically considered unfair, and the employee can claim unfair dismissal at an Employment Tribunal. Employers must avoid using the transfer as a reason to make redundancies.

 

b. Redundancies for ETO Reasons

Redundancies may be legally permissible if they are made for ETO reasons that entail changes in the workforce. For example, if the new employer needs to restructure the business for financial reasons or to introduce new technology, redundancies might be necessary. In these cases, the employer must be able to demonstrate that the redundancies are not directly linked to the transfer but are due to legitimate business needs.

 

c. Consultation Requirements

Before making any redundancies, the employer must consult with the affected employees or their representatives. This consultation should be meaningful and conducted in good time, allowing employees to understand the reasons for the redundancies and to explore alternatives, such as redeployment within the organisation.

 

d. Selection Criteria

Employers must use fair and objective selection criteria when deciding which employees to make redundant. This might include factors such as skills, experience, and performance. Employers must ensure that the selection process is transparent and does not discriminate against any group of employees.

 

2. Changing Employment Contracts Post-Transfer

 

After a TUPE transfer, the incoming employer inherits the employees’ existing contracts. If the incoming employer intends to make changes to contract terms, they will need to proceed with care since TUPE is designed to protect employees from detrimental changes to their terms and conditions.

 

a. Prohibition on Detrimental Changes

Employers cannot make changes to employment contracts that are detrimental to the employees if those changes are solely due to the transfer. For instance, reducing pay, altering job roles, or removing benefits simply because of the transfer would likely be considered a breach of TUPE.

 

b. Agreed Changes

Changes to contracts can be made if they are agreed upon by both the employer and the employee. This could happen, for example, if the employee is offered a new role with different terms that they willingly accept. However, the employer should document any agreed changes carefully and ensure that they are not seen as coerced or unfair.

 

c. ETO Justifications for Changes

Similar to redundancies, changes to contracts can be justified on ETO grounds. If the employer needs to restructure or streamline operations post-transfer, changes may be necessary to reflect new working practices. These changes must be carefully explained and consulted upon with the employees or their representatives.

 

d. Consultation and Negotiation

Before implementing any changes to contracts, employers should engage in consultation and negotiation with the affected employees. This helps to ensure that the changes are understood, and it provides an opportunity to address any concerns employees might have. In some cases, collective agreements with trade unions or employee representatives may be necessary.

 

3. Managing Disputes or Grievances from Transferred Employees

 

Disputes or grievances may arise during or after a TUPE transfer, particularly if employees feel that their rights have been infringed or that the transfer has negatively impacted their employment. Employers must be prepared to handle these issues effectively to maintain positive employee relations and avoid legal challenges.

The best strategy for preventing disputes is to communicate openly and transparently with employees throughout the TUPE process. Keeping employees informed about the reasons for the transfer, how it will affect them, and any planned changes can help to alleviate concerns and build trust.

Employers should have a clear grievance procedure in place that employees can use if they have concerns about the transfer or any post-transfer changes. This procedure should be well-publicised and easily accessible, allowing employees to raise issues in a structured way.

If disputes arise, engaging with employee representatives or trade unions can help to resolve issues more effectively. Representatives can act as intermediaries, helping to convey employee concerns to management and to negotiate solutions.

In complex situations, or if a dispute escalates, it may be necessary to seek legal advice. Employment law specialists can provide guidance on how to handle specific issues, ensure compliance with TUPE, and reduce the risk of litigation.

If internal grievance procedures do not resolve the issue, mediation may be a valuable tool. A neutral third-party mediator can help both sides reach a mutually acceptable resolution without the need for formal legal proceedings.

 

Section F: TUPE Best Practices for Employers

 

Successfully managing a TUPE transfer requires careful planning, effective communication, and collaboration with legal and HR professionals.

 

1. Tips for Ensuring a Smooth TUPE Transition

 

The following tips will help to shape a considered and compliant approach to the TUPE process:

 

a. Start Planning Early

Begin the planning process as soon as a TUPE transfer becomes a possibility. Early planning allows you to identify potential challenges, gather necessary information, and develop a detailed transition plan that addresses all aspects of the transfer.

 

b. Conduct a Thorough Due Diligence

Before the transfer, conduct comprehensive due diligence to understand the full scope of the business or service being transferred. This includes reviewing employee contracts, understanding any ongoing disputes or grievances, and assessing any potential risks associated with the transfer.

 

c. Prepare an Action Plan

Develop a step-by-step action plan that outlines each stage of the TUPE process, from pre-transfer actions to post-transfer integration. This plan should include key milestones, deadlines, and responsibilities, ensuring that everyone involved knows what to expect and when.

 

d. Identify and Consult Employee Representatives

Engage with employee representatives early in the process. This could include trade union representatives or elected employee representatives. By involving them from the outset, you can ensure that employee concerns are heard and addressed, reducing the likelihood of disputes later on.

 

e. Maintain Flexibility

Be prepared to adapt your plans as needed. TUPE transfers can be complex, and unexpected issues may arise. Maintaining flexibility allows you to respond effectively to challenges and make adjustments to your strategy as required.

 

f. Focus on Employee Wellbeing

The uncertainty surrounding a TUPE transfer can be stressful for employees. Prioritise their well-being by providing support, such as access to counselling services or additional resources to help them adjust to the changes.

 

2. Stakeholder Communications

 

Effective communication is critical to the success of a TUPE transfer. Keeping employees and stakeholders informed throughout the process helps build trust, reduce anxiety, and ensure that everyone is on the same page.

 

a. Transparent Communication

Be open and honest with employees about the reasons for the transfer, the timeline, and what it means for them. Provide clear, accurate information about how their roles, terms of employment, and conditions will be affected.

 

b. Regular Updates

Regularly update employees on the progress of the transfer. This can help alleviate uncertainty and keep employees engaged. Consider holding regular meetings or sending out written updates to keep everyone informed.

 

c. Two-Way Dialogue

Encourage a two-way dialogue with employees. Provide opportunities for them to ask questions, express concerns, and offer feedback. This could be through meetings, Q&A sessions, or dedicated communication channels.

 

d. Involve Stakeholders

In addition to employees, ensure that other stakeholders—such as customers, suppliers, and business partners—are kept informed about the transfer. Clear communication with these groups helps maintain strong relationships and ensures business continuity.

 

e. Address Concerns Promptly

When concerns or issues are raised by employees or stakeholders, address them promptly and effectively. This shows that you value their input and are committed to making the transition as smooth as possible.

 

Section G: Common TUPE Misconceptions

 

TUPE is a complex area of employment law that is often misunderstood by employers and employees alike. Misconceptions can, however, lead to mistakes in handling business transfers, potentially resulting in legal disputes, financial penalties, damage to morale and disruption to business operations.

 

1. Misconception: TUPE Only Applies to Large Businesses

One common misconception is that TUPE only applies to large businesses or significant transactions. In reality, TUPE applies to any relevant transfer, regardless of the size of the business or the number of employees involved. This means that small businesses, as well as large corporations, must comply with TUPE when there is a transfer of an undertaking or a service provision change.

 

2. Misconception: Employees Can Be Automatically Dismissed During a TUPE Transfer

Some employers mistakenly believe that they can automatically dismiss employees as part of the transfer process, especially if they intend to restructure or reduce costs. However, under TUPE, dismissals that are made solely because of the transfer are automatically deemed unfair. Employees can only be dismissed for ETO reasons that entail changes in the workforce, and even then, the dismissals must follow a fair process.

 

3. Misconception: The New Employer Can Immediately Change Employee Terms and Conditions

Another common misconception is that the incoming employer can immediately alter the terms and conditions of employment after the transfer. TUPE protects employees’ existing terms and conditions, and any changes made solely because of the transfer are typically invalid. Changes can only be made if they are agreed upon with the employees or if there is a valid ETO reason, and even then, they must be handled with care.

 

4. Misconception: TUPE Does Not Apply to Outsourcing or Service Provision Changes

Many employers believe that TUPE only applies to the sale of a business and not to situations involving outsourcing or changes in service providers. In fact, TUPE often applies to these situations as well. When a service, such as cleaning or IT support, is outsourced or brought back in-house, or when a client changes service providers, the employees involved in providing that service may transfer to the new employer under TUPE.

 

5. Misconception: Employees Can Opt-Out of the TUPE Transfer

Some employees might think they can opt out of a TUPE transfer and remain with the outgoing employer. However, if their role is part of the transferring business or service, they automatically transfer to the new employer under the same terms and conditions. If an employee refuses to transfer, they are effectively resigning from their position, and they would not be entitled to redundancy pay or other compensations.

 

6. Misconception: TUPE Only Protects Permanent Employees

It’s a misconception that TUPE only protects permanent employees. In reality, TUPE applies to all employees, including those on fixed-term contracts, part-time workers, and even employees on sick leave or maternity leave at the time of the transfer. All employees assigned to the transferring business or service are protected under TUPE.

 

Section H: Summary

 

The Transfer of Undertakings (Protection of Employment) Regulations, commonly known as TUPE, is a UK law designed to protect employees when the business or service they work for changes hands. TUPE ensures that employees automatically move to the new employer under their existing terms and conditions, safeguarding their rights during a transfer.

For UK employers, while TUPE is only one aspect of the transaction as a whole, it is one of the more high-risk elements, impacting how the process is handled before, during and after the transfer. For example, employers have to consider the legal requirement to inform and consult employees or their representatives about the transfer, which, if not done properly, can lead to significant penalties.

Another important consideration is the obligation to maintain all current employment terms post-transfer. Any attempt to change these terms without valid economic, technical, or organisational reasons can result in disputes and potential litigation. Employers should also be aware of the need to securely transfer employee data and manage it in line with data protection regulations.

 

Section I: Need Assistance?

 

TUPE transfers are fraught with risk, both for the incoming and outgoing employers. Taking professional advice can ensure you are meeting your legal obligations while supporting positive workforce relations through the transition. For expert guidance, contact our employment law and HR specialists.

 

Section J: TUPE FAQs

 

What is TUPE?
TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations. It is a UK law designed to protect employees’ rights when the business or service they work for is transferred to a new employer. TUPE ensures that employees move to the new employer under the same terms and conditions of employment.

 

When does TUPE apply?
TUPE applies in various situations, including the sale of a business, mergers, outsourcing of services, or changes in service providers. It is relevant whenever an “undertaking” (a business or part of a business) or a service provision is transferred from one employer to another.

 

Can an employer make redundancies during a TUPE transfer?
Redundancies can only be made during a TUPE transfer for economic, technical, or organisational (ETO) reasons that entail changes in the workforce. Dismissals made solely because of the transfer are automatically considered unfair. Employers must consult properly and ensure that any redundancies are justified and fair.

 

Can the new employer change the terms and conditions of transferred employees?
Under TUPE, the new employer cannot change the terms and conditions of employment simply because of the transfer. Any changes made must be agreed upon with the employees or be for ETO reasons. Changes that are detrimental to employees and solely related to the transfer are usually invalid.

 

What happens if an employee does not want to transfer under TUPE?
If an employee does not want to transfer to the new employer, they can choose to object to the transfer. However, by doing so, they are effectively resigning from their job and will not be entitled to redundancy pay or other compensations.

 

How should employers handle disputes or grievances during a TUPE transfer?
Employers should address disputes or grievances through a clear and accessible grievance procedure. Early and transparent communication, engaging with employee representatives, and seeking legal advice can help resolve issues before they escalate. Mediation may also be used to resolve disputes amicably.

 

What are the consequences of failing to comply with TUPE regulations?
Failing to comply with TUPE can result in legal action, including claims for unfair dismissal, breach of contract, and failure to inform and consult. Employers may face financial penalties, reputational damage, and disruptions to business operations if they do not adhere to TUPE requirements.

 

Does TUPE apply to temporary or part-time employees?
TUPE applies to all employees, including those on fixed-term contracts, part-time workers, and employees on leave (e.g., sick leave or maternity leave) at the time of the transfer. All employees assigned to the transferring business or service are protected under TUPE.

 

Section K: Glossary

 

Term	Definition
TUPE	Acronym for Transfer of Undertakings (Protection of Employment) Regulations, a UK law that safeguards employees’ rights during business transfers.
Transferor	The outgoing employer who is transferring the business, undertaking, or service to another employer.
Transferee	The incoming employer who is taking over the business, undertaking, or service from the outgoing employer.
Undertaking	The business, part of a business, or service that is being transferred from one employer to another.
Relevant Transfer	The situation in which TUPE applies, typically involving the transfer of an undertaking or a change in service provision.
Employee Liability Information	Information about transferring employees that the transferor must provide to the transferee, including details of contracts, disciplinary actions, etc.
ETO Reason	Economic, Technical, or Organisational reason that may justify changes to employment contracts or redundancies during a TUPE transfer.
Consultation	The legal requirement for employers to inform and discuss with employees or their representatives about the transfer and its implications.
Service Provision Change	A scenario where TUPE applies when a service previously provided in-house is outsourced, insourced, or transferred to a new provider.
Automatic Transfer	The process by which employees automatically transfer from the transferor to the transferee under their existing terms and conditions of employment.
Redundancy	The dismissal of employees that may occur during or after a TUPE transfer, potentially for ETO reasons.
Unfair Dismissal	A dismissal that occurs without a fair reason or without following the correct legal process, particularly relevant if connected to a TUPE transfer.
Terms and Conditions	The employment contract details, including pay, hours, and benefits, that must be maintained by the transferee during a TUPE transfer.
Grievance	A formal complaint raised by an employee regarding an issue such as unfair treatment, often relevant during a TUPE transfer.
Collective Agreement	A negotiated agreement between an employer and a group of employees (or their representatives), often covering terms and conditions of employment.
Mediation	A process where a neutral third party helps resolve disputes between employers and employees, sometimes used in TUPE-related grievances.
Employment Tribunal	A judicial body in the UK that resolves disputes between employers and employees, including those arising from TUPE transfers.
Data Protection	The legal obligation to handle employees’ personal data securely and in compliance with laws such as GDPR, especially during a TUPE transfer.
HR Specialists	Human Resources professionals who provide expertise in managing the TUPE process, including employee consultations and contract management.

 

Section L: Additional Resources

 

UK Government: TUPE Guidance
https://www.gov.uk/transfers-takeovers
A comprehensive guide from the UK government explaining when TUPE applies, the responsibilities of employers, and the rights of employees during a business transfer.

 

ACAS (Advisory, Conciliation and Arbitration Service): TUPE Overview
https://www.acas.org.uk/tupe
ACAS provides detailed advice on managing TUPE transfers, including guidance on consultation processes and how to handle disputes.

 

Legislation.gov.uk: TUPE Regulations 2006
https://www.legislation.gov.uk/uksi/2006/246/contents/made
The full text of the TUPE regulations as established in the UK providing the legal framework that governs business transfers and employee protection.

 

CIPD (Chartered Institute of Personnel and Development): TUPE Transfers
https://www.cipd.co.uk/knowledge/fundamentals/emp-law/tupe/factsheet
A factsheet from CIPD offering practical advice on managing TUPE transfers, with a focus on HR best practices and maintaining employee engagement.