TUPE training part one

The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) is an essential piece of legislation designed to safeguard employees' rights during business transfers.
Originally rooted in EU law through the Acquired Rights Directive, TUPE has undergone changes over the years, with significant updates in 2006 and a partial dilution in 2014. Here’s a breakdown of its key elements:
What is TUPE and what does it do?
TUPE exists to protect employees when their employer changes as a result of a business sale, outsourcing, or similar transfer. It ensures that employees retain their existing terms and conditions, while requiring employers to consult and inform affected workers.
When does TUPE apply?
TUPE applies to a "relevant transfer," which can occur in two primary scenarios:
- Business Transfers – When an economic entity retains its identity after a transfer.
- Service Provision Changes – When a company outsources, reassigns, or takes a service in-house, provided the activities remain fundamentally the same.
However, TUPE does not apply when the primary purpose of the transfer is to supply goods for the client’s own use, or if the services are too fragmented across multiple providers.
Who transfers?
Employees automatically transfer to the new employer under the ‘automatic transfer principle.’ This means:
- Their existing terms and conditions remain unchanged.
- Their continuity of service is preserved.
- The new employer assumes all previous employer responsibilities, including past actions and liabilities.
Notably, TUPE covers not only employees but also apprentices and potentially workers, though self-employed individuals are excluded.
The right to object
Employees have the right to object to a TUPE transfer. If they do so:
- Their employment ends without dismissal.
- Restrictive covenants may become invalid.
What transfers?
Under TUPE, the following elements transfer to the new employer:
- Employment contracts and collective agreements.
- Non-contractual rights and obligations.
- Continuity of service.
- Any accrued liabilities and some pension benefits.
If there is a substantial detrimental change in working conditions, the employee may treat themselves as dismissed and could claim unfair dismissal.
TUPE is a complex but essential protection for employees undergoing workplace transfers. It places obligations on employers to respect employee rights while ensuring a seamless transition. Employment solicitor Lawrence Ofori will be delivering the first half of our TUPE training in his webinar on Thursday 27 March 2025 at 12.30.
Click here to register for the webinar.