Guide to TUPE
What is TUPE?
TUPE is short for the 'Transfer of Undertakings (Protection of Employment) Regulations'. These protect the employees of a business or service which changes hands. In effect, the employees transfer from the old employer to the new employer.
When does it apply?
It can apply in many different circumstances - when you buy or sell a business as a going concern, when you change the provision of a service, or when you take over a property operate the same business from the premises. Exactly when TUPE applies is not easy to establish, even for experts. If you think TUPE might apply to your business transaction, take specialist advice.
If I don't want the staff can I dismiss them?
No – except in very specific circumstances, any dismissals will be automatically unfair if the reason is the transfer or connected to the transfer. The exceptions are complex and difficult to argue and even then the dismissals may be unfair for other reasons.
Can I change their terms and conditions then?
No – you must take them on their existing terms and conditions. You can’t make any changes unless there is an "economical, technical or organisational reason requiring a change in the workforce". Expert advice on whether this applies should be sought.
What steps can I take to guard against the effects of TUPE?
TUPE is complex legislation and the penalties for failing to comply can be very costly indeed. If you are not experienced in TUPE and are contemplating or involved in a business transfer affected by provisions, seek expert advice.
