TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations 2006. It is the law that protects employees when the business or service they work for changes hands. If TUPE applies to your situation, your employment transfers automatically to the new employer on the same terms and conditions.
TUPE applies in two main situations. The first is a business transfer, where a business or part of a business is sold or transferred to a new owner as a going concern. The second is a service provision change, which covers situations where a contract for services is transferred from one contractor to another, or brought in-house after being outsourced, or outsourced after being performed in-house.
When TUPE applies, your employment transfers to the new employer automatically. Your continuity of employment is preserved, which matters for unfair dismissal qualification and redundancy pay. Your contractual terms and conditions cannot be changed by the new employer simply because of the transfer itself. Any change that is connected to the transfer and not for an economic, technical or organisational reason is unenforceable.
Both the outgoing and incoming employer have obligations to inform and, in some cases, consult with employee representatives about the transfer. Failure to do so can result in a protective award of up to 13 weeks' pay per affected employee. Employees do not need to be represented by a trade union for these rights to apply.
Dismissal that is solely or principally by reason of the transfer is automatically unfair. There is no qualifying period required to bring a claim for automatically unfair dismissal in these circumstances. The new employer may dismiss for an economic, technical or organisational reason entailing changes in the workforce, but even then the dismissal must follow a fair procedure.
You can object to transferring to the new employer, in which case your employment terminates on the transfer date. However, you are not entitled to a redundancy payment in most circumstances if you object. It is treated as a resignation unless the transfer would involve a substantial change to your working conditions to your material detriment.
TUPE protects your terms and conditions when your employer changes through a business sale or service provision change. Your employment transfers automatically on existing terms. Dismissal connected to the transfer is automatically unfair. Employers have information and consultation obligations with financial penalties for breach.
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