TUPE
TUPE
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What is TUPE? How does it apply to you?
What is TUPE? How does it apply to you?
Understanding TUPE
TUPE can be a real headache for HR professionals. We've seen plenty of transfers go sideways because someone missed a crucial step or didn't understand the rules properly. This guide breaks down what you really need to know about TUPE in plain English.
What is TUPE actually?
TUPE (Transfer of Undertakings Protection of Employment) rules are there to protect workers when a business changes hands. They make sure employees keep their jobs, pay, and conditions when they move to a new employer.
The main thing to remember is that TUPE only works for businesses in the UK - it doesn't apply elsewhere.
When Does TUPE Kick In?
TUPE covers two main situations:
Business Transfers
This is when a company or part of it gets sold or merged. The key thing is that the employer changes - like when Company A buys Company B, and Company B's staff now work for Company A.
For TUPE to apply, you need what's called an "economic entity" that keeps its identity after the transfer. This could be equipment, premises, staff, intangible assets - basically, the stuff that makes up the business activity.
I once worked with a manufacturing company where the new owners wanted to change everyone's employment contracts after acquisition. They had a nasty shock when they learned they couldn't just tear up the old terms.
Service Provision Changes
This covers three common scenarios:
When you outsource something you used to do in-house (like IT or cleaning)
When you switch from one service provider to another
When you bring previously outsourced work back in-house
But TUPE doesn't cover everything. If you're just buying equipment or hiring someone for a single event (like a conference), TUPE probably won't apply.
For example, if you've got a contract for office cleaning with CleanCo and decide to switch to SparkleInc instead, the cleaners might be protected by TUPE and transfer to the new company.
TUPE covers two main situations:
Business Transfers
This is when a company or part of it gets sold or merged. The key thing is that the employer changes - like when Company A buys Company B, and Company B's staff now work for Company A.
For TUPE to apply, you need what's called an "economic entity" that keeps its identity after the transfer. This could be equipment, premises, staff, intangible assets - basically, the stuff that makes up the business activity.
I once worked with a manufacturing company where the new owners wanted to change everyone's employment contracts after acquisition. They had a nasty shock when they learned they couldn't just tear up the old terms.
Service Provision Changes
This covers three common scenarios:
When you outsource something you used to do in-house (like IT or cleaning)
When you switch from one service provider to another
When you bring previously outsourced work back in-house
But TUPE doesn't cover everything. If you're just buying equipment or hiring someone for a single event (like a conference), TUPE probably won't apply.
For example, if you've got a contract for office cleaning with CleanCo and decide to switch to SparkleInc instead, the cleaners might be protected by TUPE and transfer to the new company.
Who is responsible for what?
When TUPE happens, both the old and new employers have responsibilities:
If You're the Outgoing Employer
As the original employer, you need to:
Make sure employee rights and employment terms transfer properly
Think about staff who aren't transferring but might still be affected
Share employee liability information with the new employer
Not brush issues under the carpet - I've seen this backfire badly!
If You're the Incoming Employer
As the new boss, you must:
Honor existing employment contracts and continuity of service
Think about how the transfer affects your current workforce
Keep collective agreements going and work with trade unions where needed
Not try to change everything on day one - this is a common mistake!
When TUPE happens, both the old and new employers have responsibilities:
If You're the Outgoing Employer
As the original employer, you need to:
Make sure employee rights and employment terms transfer properly
Think about staff who aren't transferring but might still be affected
Share employee liability information with the new employer
Not brush issues under the carpet - I've seen this backfire badly!
If You're the Incoming Employer
As the new boss, you must:
Honor existing employment contracts and continuity of service
Think about how the transfer affects your current workforce
Keep collective agreements going and work with trade unions where needed
Not try to change everything on day one - this is a common mistake!
Seven Steps to Get TUPE Right
These seven steps will help you avoid the pitfalls:
1. Talk to Employee Representatives and Trade Unions
You legally need to consult with staff representatives before the transfer happens. Start these conversations early - "in good time" is what the law says.
If you skip this step, you could end up in an employment tribunal facing a protective award claim. Make sure you include any independent trade union or trade union representative in these discussions.
During my last TUPE project, we started consultation meetings eight weeks before the transfer. This gave everyone time to ask questions and raise concerns, which made the whole process much smoother.
2. Figure Out Who's Transferring
Make a list of everyone directly involved in the transferring part of the business. Then think about other staff who might be indirectly affected.
The automatic transfer principle means employees assigned to the transferring economic entity will move to the new employer by operation of law - they don't really get a choice unless they resign.
3. Check Right to Work Documents
Since TUPE only works in the UK, you need to make sure all transferring staff have the right to work here. This applies in both private sector and public sectors.
Check everyone's documents and keep copies. This is basic stuff, but I've seen transfers delayed because someone forgot this step!
4. Handle Redundancies Carefully
Sometimes transfers mean redundancies. If that's the case, you need to:
Really check if the redundancies are necessary
Follow proper procedures
Support affected staff
Remember that dismissals connected to the transfer are automatically unfair unless there's a solid business reason that requires changes to the workforce.
5. Be Careful with Contract Changes
You generally can't change employment contracts because of the transfer. Any changes need to be agreed by everyone involved.
Make sure you talk to staff about any proposed changes and document everything. If you don't stick to the existing terms, you could face breach of contract claims.
One thing to note - occupational pension schemes work differently. They don't automatically transfer like other employment conditions.
6. Create Clear Information Packs
Staff will have tons of questions during a TUPE transfer. Create detailed information packs covering:
Timeline for the transfer
Any changes to employment terms
Available support
Details about holiday entitlement and other practical matters
Hold meetings to explain everything and answer questions. Keep communication flowing throughout the process.
7. Be Honest with Everyone
Transparency builds trust. Be open with staff about why the transfer is happening and what it means for them.
Don't forget to keep customers in the loop too. Let them know what's changing and reassure them about service continuity.
I've found that regular updates help manage expectations and stop rumors from spreading - and believe me, rumors always spread during TUPE transfers!
These seven steps will help you avoid the pitfalls:
1. Talk to Employee Representatives and Trade Unions
You legally need to consult with staff representatives before the transfer happens. Start these conversations early - "in good time" is what the law says.
If you skip this step, you could end up in an employment tribunal facing a protective award claim. Make sure you include any independent trade union or trade union representative in these discussions.
During my last TUPE project, we started consultation meetings eight weeks before the transfer. This gave everyone time to ask questions and raise concerns, which made the whole process much smoother.
2. Figure Out Who's Transferring
Make a list of everyone directly involved in the transferring part of the business. Then think about other staff who might be indirectly affected.
The automatic transfer principle means employees assigned to the transferring economic entity will move to the new employer by operation of law - they don't really get a choice unless they resign.
3. Check Right to Work Documents
Since TUPE only works in the UK, you need to make sure all transferring staff have the right to work here. This applies in both private sector and public sectors.
Check everyone's documents and keep copies. This is basic stuff, but I've seen transfers delayed because someone forgot this step!
4. Handle Redundancies Carefully
Sometimes transfers mean redundancies. If that's the case, you need to:
Really check if the redundancies are necessary
Follow proper procedures
Support affected staff
Remember that dismissals connected to the transfer are automatically unfair unless there's a solid business reason that requires changes to the workforce.
5. Be Careful with Contract Changes
You generally can't change employment contracts because of the transfer. Any changes need to be agreed by everyone involved.
Make sure you talk to staff about any proposed changes and document everything. If you don't stick to the existing terms, you could face breach of contract claims.
One thing to note - occupational pension schemes work differently. They don't automatically transfer like other employment conditions.
6. Create Clear Information Packs
Staff will have tons of questions during a TUPE transfer. Create detailed information packs covering:
Timeline for the transfer
Any changes to employment terms
Available support
Details about holiday entitlement and other practical matters
Hold meetings to explain everything and answer questions. Keep communication flowing throughout the process.
7. Be Honest with Everyone
Transparency builds trust. Be open with staff about why the transfer is happening and what it means for them.
Don't forget to keep customers in the loop too. Let them know what's changing and reassure them about service continuity.
I've found that regular updates help manage expectations and stop rumors from spreading - and believe me, rumors always spread during TUPE transfers!
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Create a better place of work today
Simplify your people workflows and bring value to everyone in the organisation. Try Humaans today.
Simplify your people workflows and bring value to everyone in the organisation. Try Humaans today.
Common TUPE Questions
What Exactly Is TUPE?
TUPE is UK employment law that protects workers when their employer changes. It makes sure their jobs and conditions stay the same despite ownership changes.
Who Gets TUPE Protection?
TUPE covers employees who work in the part of the business that's transferring. This includes full-timers, part-timers, and fixed-term staff.
It doesn't usually cover self-employed contractors. Agency workers get some protection, but the normal rules about their assignments still apply during transfers.
What's This 50% Rule I Keep Hearing About?
The 50% rule is a practical way to decide if someone should transfer. If they spend more than half their time on the transferring service, they probably should transfer with it.
This helps figure out which employees get protection during outsourcing or when service contracts change.
What Happens If Someone Breaks the TUPE Rules?
If either employer messes up their TUPE obligations, affected staff can take them to an employment tribunal. Claims might include:
Unfair dismissal
Breach of contract
Failure to inform and consult
Deductions from wages
The minimum award for not consulting properly can be pretty hefty, so it's worth doing things right. Getting legal advice for complex TUPE situations is usually a good idea.
Does TUPE Apply to All Businesses?
TUPE applies to UK businesses of all sizes, including tiny micro-businesses and even insolvent businesses (though there are some tweaks for those). Both public and private organizations need to follow TUPE when relevant transfers happen.
How Do We Get Ready for a TUPE Transfer?
Good preparation makes all the difference. You should:
Identify everyone who might be affected
Look at all employment contracts and collective agreements
Check for any potential claims or ongoing issues
Get ready for consultation with the right representatives
Document all your decisions and why you made them
Get legal advice if things get complicated
In my experience, the transfers that go smoothly are always the ones where HR teams prepared thoroughly and followed these steps carefully.
TUPE doesn't have to be a nightmare if you know what you're doing. Take it step by step, keep communication open, and remember that the goal is to protect people's jobs during business changes.
What Exactly Is TUPE?
TUPE is UK employment law that protects workers when their employer changes. It makes sure their jobs and conditions stay the same despite ownership changes.
Who Gets TUPE Protection?
TUPE covers employees who work in the part of the business that's transferring. This includes full-timers, part-timers, and fixed-term staff.
It doesn't usually cover self-employed contractors. Agency workers get some protection, but the normal rules about their assignments still apply during transfers.
What's This 50% Rule I Keep Hearing About?
The 50% rule is a practical way to decide if someone should transfer. If they spend more than half their time on the transferring service, they probably should transfer with it.
This helps figure out which employees get protection during outsourcing or when service contracts change.
What Happens If Someone Breaks the TUPE Rules?
If either employer messes up their TUPE obligations, affected staff can take them to an employment tribunal. Claims might include:
Unfair dismissal
Breach of contract
Failure to inform and consult
Deductions from wages
The minimum award for not consulting properly can be pretty hefty, so it's worth doing things right. Getting legal advice for complex TUPE situations is usually a good idea.
Does TUPE Apply to All Businesses?
TUPE applies to UK businesses of all sizes, including tiny micro-businesses and even insolvent businesses (though there are some tweaks for those). Both public and private organizations need to follow TUPE when relevant transfers happen.
How Do We Get Ready for a TUPE Transfer?
Good preparation makes all the difference. You should:
Identify everyone who might be affected
Look at all employment contracts and collective agreements
Check for any potential claims or ongoing issues
Get ready for consultation with the right representatives
Document all your decisions and why you made them
Get legal advice if things get complicated
In my experience, the transfers that go smoothly are always the ones where HR teams prepared thoroughly and followed these steps carefully.
TUPE doesn't have to be a nightmare if you know what you're doing. Take it step by step, keep communication open, and remember that the goal is to protect people's jobs during business changes.
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