If you are buying or selling a business or considering a merger, acquisition, outsourcing or insourcing, the Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”) are likely to apply.
TUPE essentially safeguards employees' rights on the transfer of a business. The result is that employees transfer to the buyer, which inherits all rights, liabilities and obligations in relation to them. The employees are protected from being dismissed in connection with the transfer and the employers are obliged to inform and consult with representatives of the affected employees.
How we can help
TUPE is a complex area and a failure to comply with your obligations could result in an expensive claim. We can assist you in identifying whether TUPE applies and guide you through the procedural requirements. We are happy to provide sample documentation for you to use and can also draft warranties and indemnities to be included in any transfer agreement.
We have advised numerous clients in situations where TUPE has applied. We have been involved at every step of the process, including advising on the election of representatives, supporting consultations, attending meetings with employees or their representatives (as appropriate), and assisting with resulting redundancies.