TUPE: UK employment law

Essential points

• TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations 2006.
• These regulations apply to all businesses in the UK. They do not apply to public sector transfers, but if there is a private sector involved in the public sector change, then TUPE will apply. 
• TUPE regulations determine how businesses must handle employees when the whole, or part, of a business changes hands.  
• TUPE applies automatically by law. TUPE applies to a "relevant transfer" which could be either (or both) of the following situations:
  • A business transfer - where the whole or part of a business moves from one employer to another
  • A service provision change - where a change in service provider takes place. For example, when a service provided in-house is awarded out (an outsourcing), where a contract ends (and is given to another business) (a second-generation outsourcing) an/or when a business transfers work in-house (an insourcing).
• In a TUPE process there are two parties:
  • The transferor - the party who carried out the business activities before the transfer, ie the outgoing employer.
  • The transferee - the party, or parties, responsible for taking on the business requirements after the transfer, ie the incoming employer(s). 

• It is essential to follow the TUPE legislation. 2024 changes to consultation rules are now in effect.