I think I need to start by saying that you don’t get much drier or hard going than TUPE. So I am going to put my hands up now and apologise!

I’ll also say that this is a hugely complex part of employment legislation, and you absolutely must get specific advice for your business. I cannot emphasise this enough.

TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations 2006. These regulations are most likely to apply when a business is sold or merges with another company.

However, it can also apply when there is a change of service provider – this means you change from one contractor to another, providing the same service, or you take a service in house that you previously outsourced, for example your office cleaning.

In summary, TUPE is set up to protect workers in either of these environments. When a business is sold, or a contract changed, you may well be obliged to retain employees and bring them onto your payroll, or transfer them to a new contractor.

If you are obliged to retain staff, you have to maintain their existing contract, terms and conditions, and carry over their length of service.

If you are receiving the employees from another company, you also need to be aware that you will be responsible for any outstanding claims for discrimination, unfair dismissal or equal pay. This should come up when you are carrying out due diligence prior to purchase or merger.

You must go through a period of consultation with staff. If you fail to do this there is a financial penalty of up to 13 weeks pay per employee, payable by both transferor and transferee.

The key to making this successful is both planning and good communication.

And why do you need to know this?

Because if you are considering changing contractors, taking a service in house, merging with or buying another business, this may apply to you. You will need to take into consideration that you could inherit staff you don’t know with all the challenges and costs associated.

If you are concerned if TUPE applies in your business, please contact us for specific advice on 01256 328 428.