The Transfer of Undertakings (Protection of Employment) Regulations (‘TUPE Regulations) were put into place to safeguard employees’ jobs when a business or a contract is transferred from one supplier/business to another. TUPE may come into play when there is a business sale, when a contract is moved from one supplier to another or where there is a business merger.
It is essential that where TUPE may apply that you take expert advice as this is a complicated area of employment law. Under TUPE, the employees of the outgoing employer (often referred to as the transferor) automatically become the employees of the incoming employer (often referred to as the transferee) when the transfer takes place. There are ways to challenge which employees may fall within the protection of the TUPE regulations. It is also important to ensure you comply with information and consultation obligations and the disclosure of employee liability information.
After a transfer has taken place, you may end up with employees who are on different terms and conditions to existing employees – harmonising terms and conditions can however be very difficult and run the risk of being held to be void.
We can help guide you through this difficult area of employment law to ensure you do not fall foul of your legal obligations.
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