TUPE basics: what happens when your job transfers

What TUPE is

The Transfer of Undertakings (Protection of Employment) Regulations 2006 protect employees when the business or service they work in moves to a new employer. That includes a sale of a business, and a service being outsourced, brought back in-house or moved to a new contractor.

Who transfers, and what goes with them

Employees assigned to the part of the business that transfers move automatically to the new employer, with their continuous service. Their contract terms move too, along with most rights and liabilities connected with their employment.

Rights to old-age benefits under an occupational pension scheme don't transfer, but the new employer must provide a minimum level of pension provision.

Informing and consulting

Both employers must inform representatives of affected employees, long enough before the transfer, about the transfer, why it's happening, the legal, economic and social implications, and any measures they plan to take. If measures are planned, they must consult with a view to reaching agreement.

Where there are no existing representatives, employers with fewer than 50 employees, or transferring fewer than 10 employees, can inform and consult the employees directly. A tribunal can award up to 13 weeks' pay for each affected employee if this isn't done.

Employee liability information

The old employer must give the new employer employee liability information at least 28 days before the transfer: identities and ages, terms of employment, recent disciplinary and grievance history, and any claims. This is a typical point where accurate, consistent letters and schedules matter.

Protection from dismissal and changes

A dismissal because of the transfer is automatically unfair, unless there's an economic, technical or organisational reason entailing changes in the workforce. Changes to terms because of the transfer are usually void unless they fall within the limited exceptions.