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TUPE and Business Re-organisations

Our TUPE solicitors are experts in this notoriously difficult area of employment law and they can help you understand your rights and achieve the best possible outcome for you.

Protecting your TUPE rights – for you and us, it’s personal

Are you an employee feeling uncertain about how your employment may be affected after your employer’s business is sold, taken over or merged with another owner? Or has your employer lost a service contract to a competitor and do you want to make sure you are treated correctly? If so we can help.

What is TUPE?

The Transfer of Undertakings (Protection of Employment) Regulations 2006 or ‘TUPE’ for short, governs what happens to ‘affected employees’ when a business or ‘undertaking’ is sold or transferred to another person or company. TUPE also applies in many outsourcing contracts when there is a change of contractor. TUPE offers employees special rights and protections.

What does TUPE do?

If there has been ‘a relevant transfer’, TUPE applies. It protects employees (and only employees) affected by the transfer in a number of ways: 

  • it requires the outgoing employer or contractor (the ‘transferor’) and the incoming employer or contractor (the ‘transferee’) to inform and possibly consult about the transfer with their respective employees. 
  • the employees who are employed in the business or undertaking that changes ownership, or where there is a change of contractor will have their employment automatically transfer to the new owner or contractor on their existing terms and conditions of employment. This is known as the ‘automatic transfer principle’. 
  • any subsequent changes to the existing contracts of employment may well be void and unenforceable by the new employer. 
  • a dismissal of an employee can be automatically unfair if it is linked to a TUPE transfer. 

Sale of shares

TUPE does not apply to the sale of shares in a limited company. It may, however, apply to any re-organisation that takes place before (or after) the shares are sold. And you employer will have to make sure it does not act in breach of your contract of employment or unfairly towards you.

How can we help you?

At Quantrills our employment law solicitors are TUPE experts who can discuss your particular circumstances and advise you if TUPE applies and if so what are your rights and how these can be best protected. We can help you challenge your employer’s actions or we can act on your behalf.

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