It is the law that protects employees, and their benefits, when their employment changes hands.<\/p>\n
TUPE regulations govern the transfer of employees from one company to another (in part or full). It applies to two relevant transfers:<\/p>\n
1. Business takeovers, e.g. a business or part of a business is transferred from one employer to another
2. Service provision changes, e.g. outsourcing or insourcing or assignment to a new contractor<\/p>\n
This legislation is complex and easy to get wrong, and it\u2019s even riskier if you haven\u2019t fulfilled your obligations as an employer. Failure to comply with TUPE requirements can result in a financial penalty, which can be 13 weeks\u2019 pay for each affected employee.<\/p>\n
Are you considering buying or merging with another company, or selling all or part of your business?<\/p>\n
Perhaps you have recently lost a contract and need to transfer employees to the new provider?<\/p>\n
If you are managing TUPE for employees, you may find yourself caught up in the complex world of TUPE regulations.<\/p>\n<\/div>\n
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When does TUPE apply to protect your business<\/span><\/p>\nYou don\u2019t have to figure this out on your own. Our HR professionals can provide you with a complete TUPE management service that will keep you on the right side of the law.<\/p>\n
First, we\u2019ll establish if TUPE applies to your business, then we\u2019ll walk you through the TUPE for electing employee representatives and the consultation process.<\/p>\n
We will provide up-to-date advice and any required documents while ensuring that the correct information is shared between the two companies involved in the TUPE transfer.<\/p>\n
If you take up one of our pay-monthly insured services, we can provide you with additional TUPE cover. This will give you complete peace of mind that your business is protected from unexpected claims that result from the transfer of employees from one company to another.<\/p>\n
As with all our services, we will work closely with you to provide personalised support and the level of support that is right for you. Our HR professionals are local and know their local communities and aren\u2019t based in a call centre a million miles away. We can even pop in and chat face-to-face to find out your exact needs.<\/p>\n
If you\u2019d like to know more about how we can help you manage TUPE for employees, simply call or email us to discuss next steps.<\/p>\n
What is covered by TUPE transfer regulations<\/h2>\n
TUPE covers employees in the event that the work they do is transferred to a new employer. It ensures staff are entitled to the same terms and conditions of their initial employment including their continuity of service.
TUPE applies to all businesses in the UK. It doesn\u2019t matter whether you own a large corporation or a small, local business like a shop or cafe. The regulations are the same whatever the size of your company.<\/p>\n
Transfers covered by TUPE:<\/h3>\n\n- The sale or transfer of all or part of a sole trader\u2019s business, limited company, or partnership<\/li>\n
- When one company buys the assets of another, as long as they\u2019re acquiring the business and not just the shares or just the assets<\/li>\n
- The dissolving of two companies to make a third<\/li>\n
- The transfer of a contract for goods or services in circumstances that amount to the transfer of a business.<\/li>\n<\/ul>\n
Employees are not protected under TUPE if they\u2019re only contracted for a short-term task (i.e. providing cleaning or catering services for a single event), or if the contract is for goods for the company\u2019s use, such as a restaurant changing food suppliers.<\/p>\n
Transfers NOT covered by TUPE:<\/h3>\n\n- Asset-only transfers<\/li>\n
- Transfers outside the UK<\/li>\n
- Transfers of contracts relating to goods or services, where there is no transfer of the business (or part of the business)<\/li>\n
- A company\u2019s shares being sold to new shareholders, where there is no transfer of the business (or part of the business)<\/li>\n<\/ul>\n
Transfers from the Public sector to the Private sector are particularly complicated.<\/p>\n
Whether TUPE applies to your situation will depend on the facts of the particular case. Luckily, we can talk you through the specifics and make sure you understand your obligations as an employer.<\/p>\n
What is the TUPE process?<\/h2>\n
The TUPE process can be confusing, and there\u2019s a lot to consider.<\/p>\n
Therefore, it\u2019s best to consult with an HR professional about whether TUPE applies to your business transfer, and how the process works.<\/p>\n
Here is a basic outline of the TUPE process:<\/p>\n
STAGE ONE<\/h3>\n
Before the transfer, you must consult in good time with all trade unions, employee representatives and all those affected by the proposed transfer about the transfer of your business. You\u2019ll need to inform them:<\/p>\n
\n- That the transfer is happening, along with when and why<\/li>\n
- How the transfer will affect them and any measures that will take place<\/li>\n<\/ul>\n
If you fail to consult with employee representatives about anything to do with the transfer that may affect the employees, you can be penalised. You should try to gain agreement about these changes.<\/p>\n
STAGE TWO<\/h3>\n
During the transfer, you\u2019ll need to provide details of the employees\u2019 employment entitlements and personal details including:<\/p>\n
\n- Terms and conditions of employment<\/li>\n
- Date of continuous employment<\/li>\n
- Age<\/li>\n
- Holiday entitlement<\/li>\n
- Company sick pay scheme<\/li>\n
- Benefits such as private health,<\/li>\n
- Pay details how and when they are paid<\/li>\n
- Deductions from wages for child support, student tuition fees etc<\/li>\n
- All payments including overtime, commission and bonus payments<\/li>\n
- Collective agreements previously made<\/li>\n
- Pension rights<\/li>\n
- Any previous disciplinary, grievance issues or claims<\/li>\n<\/ul>\n
It counts as a breach of contract if the new employer doesn\u2019t accept the conditions of a contract. You may be faced with additional challenges, such as an employee not wanting to work for a new employer, if they unreasonably refuse they are deemed to have resigned. In this situation, it\u2019s a good idea to have an HR professional onside to make sure you stay legally compliant.<\/p>\n
STAGE THREE<\/h3>\n
After the transfer, if you\u2019re the outgoing employer, you\u2019ll need to find out how any existing employees have been affected by the transfer. Here, you\u2019re obliged to:<\/p>\n