A TUPE transfer is the transfer of a business or undertaking from one employer to another, typically as part of mergers, sales, or outsourcing arrangements. The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) provide the legal framework for such transfers.
Transfer of Undertakings (TUPE) deals with the automatic transfer of workers, assets and liabilities from one employer to another within an enterprise. Employees’ terms and conditions of employment as well as any collective agreements are automatically transferred to the new employer.
The new employer must guarantee that transferred employees receive all pertinent information
Under the Acquired Rights Directive, employees’ terms and conditions of employment are automatically transferred to a new employer upon a transfer of undertakings. This ensures that any new employer must uphold the same employment rights that were enjoyed by the employee with their previous employer.
Transferred terms and conditions of employment include the employment contract, collective agreement, as well as any company policies or procedures applicable to the employee.
This includes pay, working hours, holidays and any additional benefits like bonuses, pensions or health insurance. Furthermore, the new employer must respect the continuity of service of an employee and any accrued time-served rights.
This means the employee will have the same benefits as any other employee with similar service at the new company, such as redundancy pay or maternity leave.
Within two months after the transfer, the new employer must give employees a statement outlining all transferred rights. This should include details regarding any terms and conditions that have changed between them and their old employer, as well as any discrepancies that may exist between them.
Acquired Rights directive
The Acquired Rights Directive guarantees employees their jobs with the same terms and conditions regardless of who owns their workplace. It guarantees employees their jobs with no discrimination when the ownership of their place of employment changes hands, ensuring they can keep their positions with no loss in salary or benefits even if their employer is sold to a new owner.
TUPE (Transfer of Undertakings (Protection of Employment) Regulations 2006) typically remain in force long after a transfer has taken place.
Regulations exist to guarantee the rights of employees remain unchanged when a business or undertaking is transferred from one employer to another. Employees’ entitlements to employment, wages and benefits are all safeguarded under TUPE, meaning these won’t be affected by the transfer.
TUPE also ensures that any collective agreements and collective redundancies remain in effect after a transfer.
This implies that the same terms and conditions of employment should apply to any employee transferred to a new employer.
TUPE will remain in effect until either the transfer is completed, or until the employment contract has expired. This ensures that employees’ rights remain unchanged during this transition period. If the transfer is successful and TUPE applies to new employers after they take on employees, then TUPE will continue to cover them until their employment contract ends.
It is essential to note that TUPE may not apply in all circumstances. Seek legal counsel to guarantee all relevant terms and conditions are applied correctly.
If a contract change is unrelated to the transfer then TUPE regulations do not prevent your employer from making changes to your terms and conditions.
