TUPE stands for  the Transfer of Undertakings (Protection of Employment) Regulations 2006.

These regulations are designed to protect the employment rights of staff when the business or undertaking they are working in is sold or transferred to someone else. TUPE does not apply when a company’s shares are sold as the employer does not change. TUPE also applies in situations where services are being outsourced to a third party, services are bought back in-house (in-sourcing)  or a client changes contractors for the provision of the same service.

TUPE preserves an employee’s existing contractual employment rights and benefits, along with their length of service, when their employer changes due to the sale or transfer of the business they work in.

TUPE also requires employers to inform and consult with employee representatives in good time before any such transfer. Failure to do so can result in liability of up to 13 weeks’ actual pay per affected employee.

 

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