What is TUPE?
TUPE stands for the Transfer of Undertakings (Protection of Employment) regulations. These are designed to protect the rights of employees when the business or service provider they work for is subject to a takeover or merger.
TUPE also applies if a contract under which an employee works (such as a cleaning or catering contract) is transferred to another company. The rights of those workers are automatically transferred to their new employer on their existing terms. This helps to maintain their continuity of service.
Things to know
- TUPE regulations only apply to employees working for UK-based organisations
- Private and third sector organisations are all subject to TUPE regulations
- Transfers within the public sector are not usually covered by TUPE but employees do get similar protections in other ways
- Both the old and the new employer must adhere to the TUPE regulations
- TUPE regulations do not apply if there are valid economic, technical or organisational (ETO) reasons, such as employees being made redundant
- Failure to comply with TUPE requirements can lead to financial penalties
FAQs
What does TUPE do?
The TUPE regulations protect the rights of employees when the business or service provider they work for is subject to a takeover or merger, so those workers have continuity of service.
What organisations are subject to TUPE
TUPE applies to all UK-based organisations in the private and charity sectors, whether they are small business or huge multinational corporations.
When do the TUPE regulations not apply?
When there are valid economic, technical or organisational (ETO) reasons, such as employees being made redundant or a business being insolvent.
What if an employer fails to follow TUPE regulations?
This can result in employees taking their case to an employment tribunal and possible financial penalties.
Do employees have to agree to a TUPE transfer?
No, employees have the right to refuse to transfer under TUPE. But they can lose some rights, such as the right to redundancy pay and any claim for unfair dismissal.
Where can I find out more about TUPE?
You can find reliable information about TUPE from the Advisory, Conciliation and Arbitration Service (ACAS) and the UK Government’s official website.
