The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) protects employees’ terms and conditions of employment when a business or undertaking, or part of one, is transferred to a new employer. A ‘relevant’ transfer within the meaning of the TUPE Regulations occurs when:
- A business undertaking (or part of one) is transferred from one employer to another as a going concern – This is known as a ‘business transfer’
- A client engages a contractor to carry out work on its behalf, or where it reassigns such a contract (including bringing the work back in-house) – this is known as a ‘service provision change’.
Failure to comply with the Regulations can leave your business at risk of costly claims from each transferring employee.
If you are considering selling or buying a business or are considering a service provision change, our employment team can advice you on the impact of the Regulations, assess your potential liability and offer commercially viable solutions to minimise the impact of the Regulations.