TUPE Guidance
The Transfer of Undertakings (Protection of Employment) Regulations 2006 are among the most complex areas of UK employment law. Whether you are acquiring a business, outsourcing services, or managing a contract change, our specialists guide you through every stage to ensure full compliance and protect your business from costly claims.
Full TUPE Transfer Support
TUPE applies whenever a business or part of a business transfers to a new employer, or when a service provision changes hands. The regulations automatically transfer employees and their terms and conditions to the new employer, creating significant obligations for both the outgoing and incoming employer. We manage the process from start to finish.
Transfer Assessment
We analyse the specific circumstances of your transaction to determine whether TUPE applies. This includes assessing whether the arrangement constitutes a relevant transfer (a business transfer or a service provision change) under Regulation 3 of the TUPE Regulations 2006, considering factors such as the transfer of assets, retention of workforce identity, and the nature of the activities involved.
Employee Consultation
Both the outgoing and incoming employer have a legal duty to inform and consult with affected employees or their representatives. We draft all consultation correspondence, advise on the appointment of employee representatives where no recognised trade union exists, and manage the consultation timetable to ensure compliance with Regulation 13.
Due Diligence
We conduct thorough employment due diligence on the transferring workforce, reviewing contracts, policies, collective agreements, pension arrangements, and any ongoing disputes or tribunal claims. The outgoing employer must provide this employee liability information (ELI) at least 28 days before the transfer under Regulation 11.
Compliance Checks
We ensure every step of the process complies with the TUPE Regulations, including the preservation of existing terms and conditions, the handling of any proposed changes, and the management of any redundancies connected to the transfer. We also advise on the limited circumstances in which post-transfer changes to terms may be lawfully made.
ELI Documentation
We prepare and review the employee liability information that must be exchanged between the outgoing and incoming employers. This includes details of all transferring employees, their terms and conditions, any collective agreements, and details of any legal actions brought by employees. Failure to provide accurate ELI can result in a compensation award of at least GBP500 per employee.
Getting TUPE Wrong Is Expensive
TUPE is one of the most litigated areas of UK employment law. The consequences of non-compliance are severe. Failure to properly inform and consult can result in a protective award of up to 13 weeks' uncapped gross pay per affected employee. Dismissals connected to a transfer are automatically unfair unless an economic, technical, or organisational (ETO) reason applies.
Beyond the legal risks, a poorly managed transfer can damage employee morale, disrupt operations, and undermine the commercial rationale for the transaction. Getting expert advice early ensures the transfer proceeds smoothly for your business and the affected workforce.
- Avoid protective awards of up to 13 weeks' pay per affected employee for consultation failures
- Prevent automatically unfair dismissal claims from transferring employees
- Ensure accurate employee liability information is exchanged within the statutory deadline
- Maintain workforce stability and morale throughout the transfer process
Common Questions
What does TUPE mean and what does it cover?
TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations 2006. The regulations protect employees when the business or service they work for transfers to a new employer. They ensure that employees' existing terms and conditions of employment transfer automatically to the new employer, and they provide protection against dismissal connected to the transfer.
When does TUPE apply?
TUPE applies in two main situations. First, where there is a business transfer, meaning an economic entity that retains its identity transfers to a new employer. Second, where there is a service provision change, such as outsourcing, insourcing, or re-tendering of a contract for services. The question of whether TUPE applies can be nuanced, and we recommend seeking specialist advice before any transaction proceeds.
Can employees' terms and conditions be changed after a TUPE transfer?
Changes to terms and conditions that are connected to the transfer are void under TUPE, even if the employee agrees to them. However, changes may be permissible if they are for an economic, technical, or organisational reason entailing changes in the workforce (an ETO reason) and the employee agrees. Changes that are entirely unconnected to the transfer can be made in the normal way, subject to standard contractual principles.
What consultation is required during a TUPE transfer?
Both the outgoing and incoming employer must inform and consult with appropriate representatives of affected employees. The information must include the fact and timing of the transfer, the reasons for it, the legal, economic, and social implications for affected employees, and any measures the employer envisages taking. Consultation must be undertaken with a view to seeking agreement, and must begin in good time before the transfer.
What happens to pensions during a TUPE transfer?
Occupational pension rights do not transfer under TUPE. However, the Transfer of Employment (Pension Protection) Regulations 2005 require the new employer to provide a minimum level of pension provision for transferring employees who were members of an occupational pension scheme. This can be satisfied by matching employee contributions up to 6% into a defined contribution scheme, or by providing a defined benefit scheme. Auto-enrolment obligations also apply.
Navigate Your Transfer Safely
Get expert TUPE guidance from experienced employment law specialists. We manage the entire transfer process, ensuring full legal compliance and protecting your business from costly claims.