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TUPE

As your trusted advisor, our employment law solicitors offer many years of experience and expertise concerning TUPE and associated rights and obligations. The procedures involved in takeovers, mergers, and acquisitions can be complicated, and swift action is frequently required to ensure the deal closes. By instructing us, you can be confident that your business has the support of a team of specialist solicitors who can offer invaluable insight and ensure that you are fully compliant with TUPE in situations where a business transfer or service provision changes.

As a full-service law firm, we will work as an extension of your in-house legal and HR teams, offering support, and guidance and providing all of the TUPE law expertise you will ever need. We will limit your risk exposure and ensure you can make any employment-related changes needed to meet your commercial ambitions whilst remaining fully compliant with TUPE regulations.

Contact us on 0808 164 1349 or complete our online enquiry form to find out how we can help.

What is TUPE?

TUPE is the Transfer of Undertakings (Protection of Employment) Regulations 2006. These regulations protect employees when the business they work for is transferred to a new employer. This may occur as a result of a merger, or because the company has been bought or sold.

The TUPE Regulations will also apply in outsourcing situations. Known as a 'service provision change’, this is when:

  • A service that was previously provided in-house (e.g. cleaning or catering services) has been awarded to a contractor
  • A contract ends and is then given to a new contractor
  • A contract ends, and the service is then provided in-house by the former contractor

There must be a 'relevant transfer' for TUPE to apply. The rules determining such transfers are complex, but essentially there must be a transfer of an economic entity which retains its identity.

What rights do employees have when TUPE applies?

In situations where TUPE applies:

  • The employee's job will typically transfer to the new company – although there may be exceptions in redundancy situations or where the business is insolvent
  • The employee’s contractual terms and conditions will transfer to the new company
  • The employee’s continuity of employment will be maintained
  • The employee’s right to bring a claim for redundancyunfair dismissaldiscriminationunpaid holiday or bonuses, and other such claims, is maintained

 

 

Do I need to inform and consult with my employees if I plan to transfer my business or service provision contract?

Yes, if an employer plans to transfer their business or service provision contract, then the TUPE Regulations require them to inform them regarding:

  • The date of the transfer
  • The reason behind the transfer
  • The economic, legal and social implications for affected employees

If changes are made as a consequence of the transfer, the 'measures' must be discussed with an employee representative. The incoming employer has a responsibility to continue this consultation process.

Transferees need to inform employees (and workers if applicable) in writing:

  • That the transfer is happening, when the change will occur and why it is taking place.
  • How the transfer will affect employees – for example, if there’s a change in location, working hours, job descriptions, salary payment dates or any risk of redundancies
  • The process of the transfer.
  • Whether any reorganisation will occur.
  • If applicable, details around the use of agency workers.

Failure to inform or consult can result in an Employment Tribunal claim by employees and the trade union (if applicable). A successful claim may mean employees (and/or workers if applicable) could receive up to 13 weeks’ pay as compensation. Either the transferee or the transferor could be liable to pay the compensation, or it could be split between them.

What is employee liability information?

The transferee must provide the transferor with the following employee liability information (ELI) at least 28 days before the transfer takes place:

  • The names of transferring employees (and workers if applicable).
  • Their ages.
  • Their terms and conditions of employment.
  • Any active disciplinary and grievance records, or ongoing cases, from the last two years.
  • Any collective agreements that affect the employees’ terms and conditions
  • Details of Employment Tribunal claims made in the last two years or any prospective claims that may be made after the business transfers.

Why Wilford Smith Solicitors?

Wilford Smith was founded over 30 years ago and is now considered one of the UK’s most prestigious law firms, having developed a richly deserved reputation for excellence in our core areas of law, including employment and HR. We are more than just a law firm; we are your trusted legal advisor and will be there at every step of your commercial journey. You are never alone. The advice, support, and representation we provide to your business will be tailored to your needs and specific to your industry sector. You can be assured that with our team handling your TUPE matters, exceptional outcomes are the norm.

Our employment law teams are based in Sheffield and advise and represent clients throughout England and Wales. Contact us today on 0808 168 5813 to find out how we can help.

 

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2022 Wilford Smith is the trading name of WS Strategic Ltd. a limited company registered in England and Wales, registration number 07777022. Registered office – Meadowhall Business Park, Sheffield S9 2EQ. We are authorised and regulated by the Solicitors Regulation Authority. SRA Registration Number 640898.