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Do You Have A Tupe (Transfer of Undertakings, Protection of Employment)?

When buying or selling your business or transferring services your employees have legal rights.  Failure to understand this could render you liable for compensation awarded to your employees.

So what do you need to know about Tupe?

Do You Have A Tupe (Transfer of Undertakings, Protection of Employment)?

Phew, that’s quite some heading and believe us it’s also quite a complex area to manage. Tupe applies when there is a ‘relevant transfer’ or a ‘service provision’ change due to the sale or transfer of the whole or part of an employer’s business or undertaking as a going concern to another employer within the UK.

Essentially as the name suggests, TUPE is designed to protect employees and their employment rights. There were amendments made to tupe in 2014 to the benefit of a transferee, some of these were:

  • Being able to renegotiate terms of a collective agreement after 1 year
  • Only existing terms in a collective agreement at the time of transfer apply to transferred employees employment with the transferee
  • Provision of employee liability increased to 28 days
  • Dismissal of a transferred employee is only automatically unfair if the reason is the transfer itself
  • Significantly a change in location can be an ETO reason and as such any redundancies due to location will not be automatically unfair.

Excluding criminal liabilities and some pension rights a transferee (new employer) will have all other rights and liabilities transfer to it whilst the transferor (old employer) may still find itself liable dependant on its actions immediately before the transfer i.e. dismissing an employee because of the transfer.

All parties need to ensure legal compliance as the result of failing to do so could mean an unfair dismissal against both the transferor and transferee.

This can be a complex area of law, if you believe you have a tupe situation to manage either as the transferor or the transferee, please contact us to have a discussion about how we can assist you.

BENEFIT From Our Expertise!

  • We can help you throughout the tupe transfer process
  • We can ensure the right steps are taken in the right order
  • We can provide relevant letters and forms to support the process
  • We can meet with employees
  • We can attend meetings in an advisory capacity
  • We can meet with senior management and trade unions
  • We can help you if you’re a transferor or a transferee

The Tupe transfer of over 50 employees was smooth with no litigation issues even though it came with its own challenges as the transferor had provided the employees the opportunity to stay in its employment. We are pleased to say the majority transferred over with no issues and Jude’s presence at the GMB meetings was invaluable.

Don’t let TUPE worry you, CALL us TODAY to discuss how we can help! 01455 231982 | 07716 918272

Comments or questions are welcome.

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