What does TUPE mean?
- Is your employer based in the UK?
- Are you legally classed as an employee?
- Has the company where you work been sold to another company?
- Is the business (or part of it) being transferred to another business?
- Is your employer merging with another firm to create a new company?
- Do you provide a service that is moving to a new contractor through outsourcing, insourcing or retendering (unless it’s a one-off or short-term task)?
If yes, you might have heard the word TUPE. It’s pronounced too-pee and is short for ‘Transfer of Undertakings (Protection of Employment)’ Regulations 2006’.
These regulations are designed to protect you during and after the move, by giving you the following rights:
- You’ll be informed and consulted about the proposed transfer
- Your job will transfer to the new company
- Your existing terms and conditions will transfer to the new company
- You won’t be at risk of unfair dismissal due to the transfer
- Your length of service remains unbroken after the transfer
TUPE also protects you if some of your colleagues are moving to the new employer while you’re staying put, and if staff are being transferred from another company to the organisation where you work.
The regulations apply to UK businesses of all sizes, whether large, medium or small.
Things to look out for
Your current employer must consult you about the proposed transfer, and keep you informed in writing. There is no set timeframe for them to do this. But, if they don’t, you can make a claim against them – this must be within three months of the transfer date. If you win, you could receive up to 13 weeks’ pay.
Before the transfer, your new employer can’t ask your current employer to make you redundant – this would count as unfair dismissal. (You must have two years’ continuous service to bring an unfair dismissal claim.)
If you win a claim for ordinary unfair dismissal, the amount of compensation you could be entitled to the lower of:
- One year’s salary
- The statutory cap which is £89,493 for 6 April 2021 to 5 April 2022
If you win a claim for automatically unfair dismissal, there is no cap on the amount of compensation you could receive.
Redundancy might be an option if both employers agree, and more than 20 employees are involved, and consultation starts before the transfer.
During the transfer process, you might be protected by TUPE if you feel your rights or contract have been infringed upon, or you’ve been the victim of unfair dismissal. In this case, you should ask us for legal advice and find out whether you could make a claim.
After the transfer, you’ll keep the terms and conditions of your employment contract. If your new employer tries to make changes relating to the transfer, they will be void, even if you agree to them.
Later, your new employer might want to change your employment contract to match their other staff contracts (although they can’t make your terms and conditions worse). They might also need to make a change because there is an economic, technical or organisational reason to do so. They can do this anytime, as long as you agree.
If you don’t want to be transferred, you can request an alternative job or resign, but are unlikely to have the right to make a claim for redundancy or unfair dismissal.
If you don’t like working for the new employer, you can resign. Again, you won’t have the right to a redundancy payment and are unlikely to have an unfair dismissal claim in the absence of some ill treatment.
What this means to you
As with many legal matters, it can be complicated and every situation is different.
If you are involved in a transfer, it’s important to ask for legal advice, even if you are unsure whether you are protected under TUPE.
We act for employees (not employers) and will be happy to help.
As with all employment law claims, time limits are tight, so it’s important to act quickly. We look forward to hearing from you soon.
Related reading
If you found this information useful, you might also like to read our other articles on the subject:
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