Definition
The transfer of a business, part of a business, or a service provision from one employer to another, where the Transfer of Undertakings (Protection of Employment) Regulations 2006 protect affected employees' rights and continuity of employment.
UK Context
The Transfer of Undertakings (Protection of Employment) Regulations 2006 implement the EU Acquired Rights Directive in UK law. The 2014 amendments simplified certain provisions and introduced the micro-business consultation exception. Post-Brexit, TUPE remains part of UK domestic law. Key UK case law includes Spijkers v Gebroeders Benedik (business transfer test), Cheesman v R Brewer Contracts (service provision changes), and Enterprise Management Services v Connect-Up (organised grouping of employees).
Best Practices
- Identify potential TUPE transfers early in any business change process and seek specialist advice
- Request and review Employee Liability Information from the transferor at least 28 days before the transfer
- Inform and consult employee representatives in good time before the transfer
- Avoid making changes to terms and conditions solely because of the transfer
- Plan integration carefully, respecting transferred employees' existing rights while building engagement with the new organisation
Frequently Asked Questions
Do employees have to agree to a TUPE transfer?
Employees cannot be forced to transfer. They have the right to object to the transfer, but if they do, their employment terminates on the transfer date and they are not treated as having been dismissed. This means they lose the right to claim unfair dismissal or redundancy pay in most circumstances.
What happens to pensions during a TUPE transfer?
Occupational pension rights are excluded from automatic TUPE transfer. However, the Transfer of Employment (Pension Protection) Regulations 2005 require the new employer to provide a minimum pension contribution. Auto-enrolment duties also apply.
Can the new employer change employees' terms after a TUPE transfer?
Changes are void if the sole or principal reason is the transfer itself. Changes may be permissible if there is a genuine economic, technical, or organisational reason entailing changes in the workforce. The law is complex and legal advice should always be sought.