UPE provides legal protection for employees when a business changes ownership. It’s a complex area of law affecting many business transfers, making it essential that companies understand the liabilities that can arise. This guide provides an overview of TUPE and its implications for employers. We also look at ways to support the integration of transferring employees into an existing workforce. Detailed information on TUPE is available on the gov.uk website: Business transfers, takeovers and TUPE
What is TUPE?
TUPE is an acronym for Transfer of Undertakings (Protection of Employment) Regulations 2006. The purpose of TUPE is to protect and preserve employees’ rights if a business changes ownership. Where TUPE applies, the buyer takes on ‘the rights, responsibilities and liabilities of the seller towards the employees’ (CIPD). The transferring employees are afforded the following legal protection*:
- Employees are automatically transferred to the new employer;
- Terms and conditions of employment are preserved;
- Employees are protected against dismissal; and
- There is an obligation to inform and consult.
