TUPE (Transfer of Undertakings (Protection of Employment) Regulations) is a complex area of employment law, and often a little known or understood area of law. TUPE regulations are not voluntary.
The TUPE regulations seeks to protect UK employees when a business or part of a business is sold and changes ownership. Additionally, TUPE applies when there is a service provision change. A service provision change occurs when a client who engages a contractor to do work on its behalf is either outsourcing or re-tendering the contract, or bringing it back in-house.
In very broad simple terms, the contracts of employment of those employees employed by the outgoing business, or assigned to the particular contract which is changing hands will automatically transfer to the incoming business or new service provider on their existing terms. The employees’ continuity of service is preserved. The new business owner or service provider inherits all rights, liabilities and obligations in relation to the employees, for example unpaid wages, redundancy payments, unfair dismissal.
The regulations are very prescriptive in terms of the steps you must take in connection with a proposed TUPE transfer and the potential compensation that could be awarded to employees for non-compliance with the regulations or a dismissal in connection with the transfer is expensive.
It is imperative to take legal advice at the outset. Our experienced employment law solicitors work closely with our commercial team and can guide you through the due diligence stage and consultation requirements, right through to post completion. In particular, we can assist with the preparation and negotiation of the business sale agreement, ensuring that appropriate indemnities and protections are put in place to minimise your liabilities and financial exposure.
For further advice and assistance, please call our Head of Employment, Lianne Payne, on 024 7623 1000.
Contact one of our Solicitors in Coventry: firstname.lastname@example.org