TUPE: What do employees need to know?

• What is TUPE?
  
• When does it apply? 
• When does it not apply? 
• Employee rights under TUPE 
• Making a TUPE claim 

If your employer has recently announced a business transfer, merger, or outsourcing arrangement, you might be hearing the term "TUPE" cropping up in meetings and employee communications.  

TUPE regulations exist to protect employees when businesses change hands: they exist to make sure that your job security and employment terms remain intact during transitions, and that your rights as an employee are upheld once changes take place.  

So, what is TUPE? 

TUPE stands for Transfer of Undertakings (Protection of Employment) Regulations 2006. Fundamentally, it’s a set of regulations designed to protect employees when their workplace undergoes certain types of business transfers or service provision changes. 

The primary purpose of TUPE is to preserve your employment relationship when business activities and/or ownership transfer from one employer to another. Instead of losing your job during a business sale or outsourcing arrangement, TUPE makes sure your employment contract automatically transfers to the new employer — on the same terms and conditions you’d previously agreed to. 

When does TUPE apply? 

TUPE protection isn't automatic, and doesn’t apply to every business change.  

Employees are protected by TUPE in two specific scenarios: 

Relevant Transfers 

Relevant transfers are when a business or part of a business is transferred from one employer to another — such as a company acquisition, merger, or asset sale. 

To constitute a relevant transfer, there must be a transfer of an economic entity that retains its identity. This means: 

• A recognisable business or business unit must transfer to a new employer 

• The business activities must continue in a similar manner after the transfer takes place 

• Assets, employees, or customer relationships typically transfer as part of the arrangement 

• The transferred entity maintains its distinct identity under new ownership 

Service Provision Changes 

Service provision changes occur when: 

• Services move from being provided in-house to an external contractor (outsourcing) 

• Contracts transfer from one service provider to another (re-tendering) 

• Previously outsourced services return to being provided in-house (insourcing) 

The main requirement is that an organised group of employees must be assigned to carry out the activities on behalf of the client both before and after the change. 

When does TUPE not apply? 

TUPE typically doesn't apply when: 

• A company's ownership changes through share purchases rather than asset transfers. This means existing employment contracts stay with the same legal employer. 

• Transfers occur during formal insolvency proceedings. 

• Changes are the result of short-term secondments or temporary work arrangements. 

• Buyers acquire only physical assets — such as business equipment or property — without taking on business operations or staff. 

Employee rights under TUPE 

Can my salary be reduced under TUPE? 

TUPE protects your existing terms and conditions of employment, including salary. Generally, your salary cannot be reduced solely because of a TUPE transfer. 

What are the protected terms and conditions? 

When TUPE applies, your new employer must honour: 

• Your current salary and pay structure 

• Holiday entitlements and pension rights 

• Working hours and shift patterns 

• Notice periods and disciplinary procedures 

• All other contractual benefits and obligations 

These protections continue indefinitely after the transfer, not just during the transition period. 

What are my rights during a transfer? 

Information and consultation  

Your current employer must provide: 

• Advance notice of the proposed transfer 

• Information about why the transfer is happening, and when it will occur 

• Relevant information about any measures the new employer plans to take that will affect employees 

If you're represented by a trade union or elected employee representatives, they’ll be entitled to more detailed information about the transfer's implications. 

Protection against dismissal 

TUPE makes it automatically unfair to dismiss employees because of the transfer itself.  

Despite this, dismissals may still be permitted for: 

• Economic, technical, or organisational reasons requiring workforce changes 

• Conduct or performance issues unrelated to the transfer 

• Redundancy situations arising from legitimate business reorganisation 
  

Continuity of employment 

Your length of service continues unbroken through TUPE transfers. This preserves your entitlement to any service-based renumeration, for example: 

• Statutory redundancy pay entitlements 

• Unfair dismissal protection thresholds  

• Enhanced holiday or pension rights based on service length 

• Maternity, paternity, and adoption leave entitlements 

Making a TUPE claim 

What constitutes a breach of TUPE regulations? 

If you believe your employer has breached TUPE regulations, you may have grounds for a legal claim.  

A number of issues can arise during TUPE transfers, but most fall into one of the below categories: 

• Failure to consult (in which employers neglect proper information and consultation requirements). 

• Unlawful dismissal and/or termination. 

• Detrimental changes, i.e. attempts to worsen employment terms. 

• Pension disputes and complications, including accrued benefit protection. 

How can I report a breach of TUPE regulations?  

If you believe your TUPE rights have been violated, and you don’t receive a satisfactory response from your employer, you can submit a claim to the Employment Tribunal. 

Employment claims must be submitted within three months of the relevant incident, and you should be prepared to present a comprehensive employment tribunal bundle which includes the details, evidence, and progression of your claim. 

When making a claim, it’s generally recommended to consult an employment law specialist to assess the strength of your case, assist with drafting documents, and advise on your best steps.  

Through the public access scheme, members of the public can directly work with an employment law barrister, who can also represent you in court should the need arise. This route often presents a lower cost alternative to instructing via a solicitor, as work is priced on a fixed-fee basis, and allows for quicker turnaround under a tight claim submission deadline. 

At Barrister Connect, we host a number of specialist employment practitioners experienced in tackling TUPE claims — from initial advice to courtroom representation.

If you’re facing a TUPE matter, feel free to get in touch with our friendly team to find out how we can help.