TUPE

Topic Index
Overview
When does TUPE apply?
Who transfers under TUPE?
Effect of TUPE on terms and conditions of employment
TUPE information and consultation requirements
Due diligence on TUPE transfers: HR actions
Changing terms and conditions and TUPE transfers
Dismissals and TUPE
TUPE and collective agreements
TUPE and pensions
Resources

Overview

 

  • The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) are designed to protect the rights of employees on the transfer of the business in which they are employed. The original genesis for TUPE is the EU Acquired Rights Directive.
  • TUPE aims to ensure that when a transfer occurs the transferring employees transfer with the terms and conditions of their employment contracts intact and that there is a structure for the transfer process.
  • Where there is a ‘relevant transfer’, TUPE applies automatically. Employers and employees cannot agree to exclude TUPE protection where it applies.
  • TUPE provides for various obligations on the transferring employer (the transferor) and the receiving employer (the transferee) to inform and consult the affected employees.
  • Employees need two years’ service to claim for unfair dismissal based on TUPE.
  • Various reforms to the scope of TUPE were made in 2014, among them permitting contractual changes if not ‘by reason of the transfer’; freezing collectively agreed terms at the point of transfer; enabling terms derived from collective agreements to be renegotiated after one year; specifying that a change in location will qualify as an ETO reason; enabling micro-businesses to consult directly with employees; and enabling transferees validly to start collective redundancy consultation pre-transfer.
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