Definition
Regulations that protect employees' terms and conditions when a business or part of a business is transferred to a new employer. Employees automatically transfer to the new employer on existing terms, and dismissal solely because of the transfer is automatically unfair.
UK Context
The Transfer of Undertakings (Protection of Employment) Regulations 2006 (as amended in 2014) implement the EU Acquired Rights Directive into UK law. TUPE applies to business transfers and service provision changes, such as outsourcing, insourcing, and retendering of contracts.
Best Practices
- Identify all employees who will transfer and provide Employee Liability Information to the new employer at least 28 days before transfer
- Consult with affected employees or their representatives about the transfer and any proposed measures
- Avoid making changes to terms and conditions solely because of the transfer, as these are generally void
Frequently Asked Questions
What rights do employees have under TUPE?
Employees automatically transfer to the new employer on their existing terms and conditions including pay, holidays, and length of service. They cannot be dismissed solely because of the transfer, and any such dismissal is automatically unfair.
Can terms and conditions be changed after a TUPE transfer?
Changes to terms solely because of the transfer are void. However, changes can be made if there is an economic, technical, or organisational reason entailing changes in the workforce, and the employee agrees. Normal contractual variation rules apply for non-transfer-related changes.