The Transfer of Undertakings (Protection of Employment) Regulations 2006 mean that your rights as an employee must be protected if your employer's business, part of their business or the service provider you work for is transferring to another person or company.
The Transfer of Undertakings (Protection of Employment) Regulations 2006, commonly known as TUPE, exist to protect your existing terms and conditions of employment and legal rights when your employment transfers to a new employer.
There are two types of TUPE transfer; business transfers (where a business, or part of a business, transfers ownership) and a service provision change (when services are outsourced to a contractor, moved to a different contractor, or brought back in house).
Under TUPE, employees of the outgoing employer automatically become employees of the incoming employer at the point of transfer. They retain their continuous service and should continue to enjoy the same terms and conditions of employment.
When does TUPE apply?
TUPE regulations apply when a ‘business transfer’ (including service provision changes) occurs. This commonly happens when:
The company you work for is sold or transfers to a new owner. This can include where two companies combine to form a new company or where one company takes over the business of the other.
A service previously undertaken by your employer is awarded to a contractor (called 'contracting out' or 'outsourcing').
A service contract is assigned to a new contractor during a retendering process.
A service contract to which you're assigned ends with the service being taken 'in-house' by the client.
The regulations would not apply if the shares of a company are being sold to a new owner, or if business assets (not the company itself) are sold.
What rights does TUPE give me?
TUPE protects your terms and conditions of employment where the new employer is seeking to change them to your detriment following a transfer. For example, if you currently work on weekdays only but under the new arrangements you would be expected to work at weekends, or if your new employer is proposing to change your pay, benefits or bonus, you might have every reason to feel that your rights have not been protected.
It's also a requirement under TUPE that employees are consulted before a transfer takes place, particularly in relation to any 'measures' that the incoming and outgoing employers are expecting to make. The regulations do not define the term 'measures' but they're likely to include changes to existing work practices such as pay rates, job descriptions and hours of work.
If the ownership of the company, service provider or part of the business you currently work for is about to change and you're worried about your rights being infringed, you may wish to speak to one of experienced employment solicitors about your rights under TUPE.
When a new employer takes over a business, they may naturally see it as a necessity to bring your contract in line with their existing staff members. It could be that your contract has more favourable terms, and existing employees are likely to be unhappy if they learned they were on less favourable terms.
Harmonisation can therefore often mean giving up more favourable terms and conditions of employment that you previously enjoyed. Some employers may offer other benefits or perks that you may not currently enjoy, as a means of encouraging you to agree to the change to your terms and conditions. Other employers may use the threat of redundancies or dismissing you and re-engaging you on new terms and conditions as a means of getting you to agree to 'harmonisation'.
If you're being asked to forego your existing contract of employment and accept a new one following your employer's business, part of the business or the service provider you work for transferring to another person or company, or your employer is looking to dismiss you after a transfer, you should take specialist legal advice and speak to one of our experienced TUPE solicitors right away.
This is an extremely complex area of employment law, and the only way you can be sure of getting a fair deal is to talk to a solicitor with TUPE expertise.
Why choose Slater and Gordon’s TUPE solicitors?
Dealing with TUPE regulations is an extremely complex area of employment law, and the only way you can be sure of getting a fair deal is to talk to a solicitor with TUPE expertise.
At Slater and Gordon, our experienced TUPE solicitors have helped hundreds of clients understand the implications of a TUPE transfer and negotiate the best possible terms for their future. We have an incredible track record of success in these cases, and many of our solicitors have received recognition from esteemed legal publications such as Chambers and Partners and the Legal 500.
To find out more about how we can help you, get in touch with our specialist TUPE solicitors today.
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Frequently asked questions about TUPE employment law
Can I refused to be transferred under TUPE?
You can refuse, though it is important to understand that this is essentially the same as handing in your resignation. You won’t usually be entitled to redundancy pay (unless agreed with your old or new employer) or be able to claim for unfair dismissal. If you do decide to refuse a transfer, you should inform your employer in writing, and they should reply with an agreed leaving date and terms of notice.
How long is my job protected under TUPE?
It's a common misconception of employers that they can alter your terms and conditions of employment following a transfer if they simply wait for a period of time post-transfer before making the changes or harmonising.
It's important for employees to know that TUPE protects against change/harmonisation for an indefinite period if the sole or principal reason for the change is the transfer unless your employer can show an economic technical or organisational (ETO) reason entailing changes in the workforce and relating to the numbers or functions of the employees affected.
Can my employer reduce my salary under TUPE?
Under TUPE regulations, your new employer cannot lawfully make any changes to your contract if the sole reason, or main reason, for the change is the transfer itself. This means that it would be against the law for your employer to attempt to reduce your salary due to TUPE.
What happens if my employer fails to consult employees under a TUPE transfer?
Employers – both your old and new employer – are responsible for adequately consulting and informing employees affected by a TUPE transfer. If they fail to do so, they could be jointly or individually liable and could be taken to an employment tribunal.
I am very happy with the service provided which was professional, quick and efficient. I would certainly recommend Slater and Gordon Lawyers should any chance arise. Huge thank you! V K (employment case)
The Manchester Office has been very professional, helpful and prompt when dealing with a settlement agreement regarding my voluntary redundancy. I would have no hesitation in recommending Slater and Gordon for any employment law issue. D M (employment case)
I would 100% recommend Slater and Gordon if you need any help in employment law. They offer an incredible service. H L (employment case)