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Tupe transfers

Overview
Watkins, Gillian - Eversheds LLP
Overview
The Transfer of Undertakings (Protection of Employment) Regulations 2006, commonly referred to as TUPE, originate from the European acquired rights directive.
 
  • These regulations apply in any situation where a UK business (or part of a business) is transferred to another employer (not necessarily based in the UK) or an organisation changes the way in which it delivers its services, such as by outsourcing to a contractor.
  • The broad effect of Tupe is to preserve the continuity and terms and conditions of employment of employees who are transferred to a new employer.
  • Tupe also imposes a number of obligations on the transferring employer (the transferor) and the receiving employer (the transferee) to inform and consult with affected employees.
  • The effect of Tupe on insolvent businesses is considered separately.
 

Recent developments

TUPE laws to change

Following the governments reversal on its position on the law derived from the EU that remains in UK law, when instead of repealing everything that was not actively maintained by 31 December 2023, it decided go through a process of reviewing them without the above deadline, it has now announced that TUPE laws may change. 

The government has proposed to amend consultation requirements in preparation for a TUPE transfer, by removing the requirement to consult with elected reps for businesses with fewer than 50 people and transfers affecting less than 10 employees.