TUPE or the Transfer of Undertakings (Protection of Employment) Regulations protects employees’ terms and conditions of employment when a business is transferred from one owner to another.
When the business changes hands, employees of the previous owner automatically become employees of the new employer on the same terms and conditions. It’s as if their employment contracts had originally been made with the new employer with continuity of service and any rights are all preserved. Both old and new employers are required to inform and consult employees affected directly or indirectly by the transfer.
TUPE can be complex and it’s highly recommended that businesses consult Employment Law experts to ensure that the correct procedures are being adhered to.
Failure to inform and consult or to follow TUPE procedures can lead to: