TUPE

What is TUPE and why does it matter?

TUPE (Transfer of Undertakings (Protection of Employment) Regulations 2006) ensures employees keep their existing terms and conditions when the business or service they work for changes hands. For business owners, this means:

• Employees transfer automatically to the new employer
• All rights, obligations, and liabilities move with them
• You cannot contract out of TUPE – but you can manage the risks.

Failing to plan for TUPE can expose your business to automatic unfair dismissal claims, redundancy costs, and other liabilities.

When does TUPE apply?

TUPE typically applies when:

• You buy or sell a business (or part of one) which retains its identity after the transfer
• You outsource or change service providers or bring outsourced services back in-house. If the activities remain broadly the same and employees are organised to deliver those services; TUPE is likely to apply.

Early advice is essential to avoid surprises.

Key risks for employers

• Automatic transfer of liabilities: Employment contracts, statutory rights, and claims (e.g. unfair dismissal, discrimination, unpaid wages) transfer to the incoming employer
• Unfair dismissal: Dismissing staff because of the transfer is automatically unfair unless there’s a valid economic, technical, or organisational (ETO) reason involving workforce changes
• Contract changes: Any changes to contractual terms made because of the transfer are void unless they are for an ETO reason involving workforce changes or the contract terms permit the particular change
• Information and consultation obligations: Failing to comply with TUPE information and consultation obligations could result in you having to pay affected employees up to 13 weeks’ full pay
• Hidden costs: Without proper due diligence, you could inherit unexpected claims or obligations.

How can we support you?

We are experienced in advising businesses about how to deal with TUPE issues and provide specialist advice to ensure that outcomes are favourable and businesses are protected from TUPE-related legal claims.

We can help you to:

• Assess TUPE risk before deals or service changes
• Negotiate indemnities to allocate liabilities fairly
• Plan workforce changes lawfully and strategically
• Handle dismissals and restructuring to avoid claims
• Defend Employment Tribunal claims if disputes arise.

Our advice is clear, practical, and focused on protecting your commercial objectives.