All employers have various obligations to their employees when involved in TUPE arrangements. TUPE ensures employees’ rights are protected and that their terms of employment and continuity of service remain intact.
If a business fails to comply with all TUPE requirements, an employment tribunal can award up to 13 weeks’ pay for each employee who has not been properly dealt with.
TUPE (the Transfer of Undertakings (Protection of Employment) Regulations 2006) means that “affected employees” are automatically transferred from one employer to another in certain circumstances.
TUPE applies to a relevant transfer, which can be when but not limited to:
- A business or part of a business is sold
- Work is outsourced from a client to a contractor
- Outsourced services are transferred from the original contractor to another contractor
- A client brings the outsourced services back in-house.
- Employees who object to the transfer do not automatically transfer to the new employer.
- Employees are entitled to enhanced protection against unfair dismissal.
TUPE can be a complex process full of land-mines and employment laws that it is easy to fall foul of.
Therefore if you are thinking of buying/selling all or part of a business or contracting out some of your functions, we would recommend you take specialist employment law advice and contact our employment solicitors and expert legal team on 01780 757589, request a call-back or complete our quick online enquiry form.