Transfer of Undertaking (Protection of Employment) Regulations 2006 - TUPE

Facts about TUPE

The Transfer of Undertaking (Protection of Employment) Regulations 2006, are:

• More commonly known as TUPE
• The regulations were implemented due to the Acquired Rights Directive from the EU
• Provides protection for employees before, during and after the transfer from one employer to another
• Protects employee terms and conditions of employment indefinitely

TUPE transfers apply to:

• Subcontracted business transferred to a contracting company
• Outsourced functions
• Franchises
• Public and private sector companies
• A single employee transferring to a new contractor
• Small parts of a larger company
• Company Acquisitions 

The regulations are in place to stop companies avoiding or minimising the impact of TUPE. It is better to be prepared about TUPE than ending up defending an Employment Tribunal claim.

If you are the incoming employer, you need to undertake a thorough due diligence process. This will enable you to understand what you are taking on before you have even submitted your tender or put any figures on paper. You must request and examine all relevant employment information and be aware of any future potential liabilities which may transfer to you, including salaries, pensions and employee terms & conditions.

If you are the outgoing employer, you have a duty to provide full and correct data on contractual and implied terms of employment as well as any local arrangements, which are in force.

Both parties must undertake reasonable consultation with the affected employees.

If any of the above applies to your company or you would like to find out more about TUPE, then please do not hesitate to get in touch with us to discuss your concerns or requirements.