The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) place on employers onerous legal and procedural requirements that create a high risk of legal claims should they deviate from these requirements.
TUPE can apply in any of the following circumstances:-
- The sale or purchase of a business
- The assignment of a lease or licence where the incoming lessee or licensee operates the same business from the premises
- Outsourcing or bringing services back in-house
- Replacing an external service provider with a new contractor
- Incorporation of an existing business or conversion to an LLP
- A new franchisee takes over an existing franchise
Employees and their terms of employment transfer automatically under TUPE. There are strict rules governing fairness of dismissal in the context of a transfer, and obligations to inform and consult with the representatives of affected employees before a transfer takes place. It is therefore crucial to understand your legal position before entering into agreements that could result in your business taking on extensive liabilities.
Our Employment team has the expertise to guide you through this highly complex area of law. If you are in any doubt as to whether your business plans might involve TUPE, we strongly recommend that you contact us at firstname.lastname@example.org
- Acting for a new service provider in defending Employment Tribunal proceedings bought by an employee alleging unfair dismissal following a TUPE transfer, and successfully negotiating a settlement.
- Ongoing advice to facilities-management clients in connection with the TUPE implications of tendering for and winning new contracts.