Definition
The legal framework that protects employees when the business or service they work for transfers to a new employer. TUPE ensures that employees' existing terms and conditions of employment are preserved after the transfer.
UK Context
TUPE is governed by the Transfer of Undertakings (Protection of Employment) Regulations 2006, as amended in 2014. It applies to business transfers and service provision changes (such as outsourcing, insourcing, or retendering contracts). Employees transfer automatically to the new employer with their existing terms. Dismissals connected to the transfer are automatically unfair unless there is an economic, technical, or organisational reason.
Best Practices
- Identify early whether a transaction triggers TUPE and seek legal advice on obligations
- Provide employee liability information to the incoming employer at least 28 days before transfer
- Consult with affected employees or their representatives about the transfer and any measures envisaged
Frequently Asked Questions
Can an employer change terms and conditions after a TUPE transfer?
Changes to terms and conditions are void if the sole or principal reason is the transfer itself. Changes for an economic, technical, or organisational reason entailing changes in the workforce may be permissible. The position is complex and employers should take legal advice before making changes.
Do pensions transfer under TUPE?
Occupational pension schemes do not fully transfer under TUPE. However, the new employer must offer transferring employees membership of a pension scheme that meets minimum requirements. Auto-enrolment duties apply regardless of TUPE.