TUPE refers to the “Transfer of Undertakings (Protection of Employment) Regulations 2006” as amended by the “Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014”.
TUPE applies to organisations of all sizes and protects employees’ rights when the organisation or service they work for transfers to a new employer.
TUPE has impacts for the employer who is making the transfer (also known as the transferor) and the employer who is taking on the transfer (also known as the transferee).
TUPE can apply on the sale of a business as a going concern or where one contractor takes over a service for a client which had previously been carried out either inhouse or by another company.
The most common examples are when a cleaning company loses a contract to another company or when and IT service is outsourced to an external provider.
The effect is that any employees working in the original company or service will transfer to the employment of the new company or service provider. The financial implications of a transfer can not therefore be underestimated.
There are also obligations as to consultation by both parties in a transfer and failure to comply with these can result in claims being commenced against the business.
It is sensible if you think TUPE may apply to a transaction in which you are involved to take advice as far in advance of the transaction as you are able. The team are experienced in advising you as to whether the TUPE Regulations apply and guiding you through your obligations ( if any )
Please contact us for further information on 01133229222