Transfer of undertakings advice (TUPE)
What is TUPE? TUPE refers to the “Transfer of Undertakings (Protection of Employment) Regulations 2006” as amended by the “Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014”. The TUPE rules apply to organisations of all sizes and protect employees’ rights when the organisation or service they work for transfers to a new employer. Taking transfer of undertakings advice is essential to avoid what could be costly litigation, and from employees who you may never even have met! TUPE has impacts for the employer who is making the transfer (also known as the outgoing employer or the transferor) and the employer who is taking on the transfer (also known as the incoming employer, the ‘new employer’ or the transferee).
When does TUPE apply?
There are two situations when the TUPE regulations may apply; business transfers and service provision transfers.
In business transfers
The TUPE regulations apply if a business or part of a business moves to a new owner or merges with another business to make a brand new employer. A part of a business might for example be a distribution function of a larger organisation.
In service provision transfers
The TUPE regulations apply in the following situations:
- a contractor takes over activities from a client (known as outsourcing).
- a new contractor takes over activities from another contractor (known as re-tendering).
a client takes over activities from a contractor (known as in sourcing) Activities can be of almost any service, trade or function. Whether it be cleaning services, security provision (the most common transfers) or a contract for transport and distribution. The penalties for getting it wrong can be serious, especially for the smaller business. Imagine being sued by someone you’ve never even met!
The golden rule is…….Take advice…….before you agree to anything!
“Following a restructure, we were struggling with the concept and implications of TUPE. Paul’s down to earth, practical advice simply made the problem go away”. Martin Tetlow, Director, MINT COPY Ltd. Manchester
“Paul is an experienced professional who provides detailed, accurate guidance, ensuring that you fully understand the rationale behind his advice. He is a pleasure to work with and assisted in my understanding of the finer details surrounding TUPE.” Sue Butterworth AKAS consultancy Manchester
- My thanks to ACAS especially for the helpfull flow chart…