Business Transfers and TUPE – FAQs

Business Transfers and TUPE – FAQs

Listed below are some questions we are commonly asked:

I am purchasing a business. I want to put the employees that will transfer to me on the same terms and conditions as my existing staff. Can I do that?

Whilst this is a very sensible course of action, the effect of TUPE is that employees who transfer are entitled to the benefit of the terms and conditions offered to them by their previous employer and you are obliged to honour those. If you try to harmonise their terms with your own existing contracts, in all but very limited circumstances those changes could be void.

If you are considering changing terms and conditions of transferring employees, you should take advice from our Employment Team.

Disclaimer: This information is provided for general guidance only and is not intended to constitute legal advice. You must consult our employment solicitors if you require advice on your situation or circumstances.

 

Business Transfers – When does TUPE apply?

TUPE can apply in many contexts, but the most common scenario is when a business (or part of a business) is sold, with the buyer acquiring the assets and goodwill and continues to trade as a going concern.

TUPE also applies where there is a change of service provider. If services which were undertaken in-house are outsourced to a third party or if you take services back in-house, TUPE may well apply.

If your business tenders for new work or loses a contract to a competitor, the implications of TUPE will always need to be carefully thought through, to assess if employees engaged on the contract will transfer.

TUPE is not limited to these obvious situations and consequently, you should always take advice from our specialist employment solicitors to consider whether TUPE might apply. If you don’t, what seemed to be a lucrative contract can soon turn into a burdensome liability.

Disclaimer: This information is provided for general guidance only and is not intended to constitute legal advice. You must consult our employment solicitors if you require advice on your situation or circumstances.

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