Understanding TUPE transfers, employee rights, and employer obligations can be a complex task. The Transfer of Undertakings (Protection of Employment) regulations, commonly known as TUPE, are designed to protect employees when a business changes hands. They apply to all businesses, regardless of size, and can have significant implications for both employers and employees. This article aims to provide a comprehensive guide to understanding TUPE transfers, the rights of employees, and the obligations of employers.
What is a TUPE Transfer?
A TUPE transfer occurs when a business or part of a business moves from one owner to another. This could be due to a sale, merger, or outsourcing. The TUPE regulations are designed to protect employees in these situations, ensuring that their terms and conditions of employment are preserved.
There are two types of TUPE transfers:
- Business transfers: This happens when a business or part of a business moves to a new owner or merges with another business to make a brand new employer.
- Service provision changes: This occurs when a service provided by a contractor (like cleaning, workplace catering, or security) is reassigned to a new contractor or brought in-house.
Employee Rights under TUPE
Under TUPE, employees are entitled to several rights. These include:
- Preservation of employment terms and conditions: All terms and conditions of employment (including pay, working hours, and leave entitlements) should remain the same after the transfer.
- Protection against dismissal: If an employee is dismissed because of the transfer, it is considered automatically unfair.
- Right to be informed and consulted: Employers must inform and consult employees about the transfer and any measures that may affect them.
- Right to object to the transfer: If an employee does not wish to work for the new employer, they can object to the transfer. However, this is usually treated as a resignation, not a dismissal.
Employer Obligations under TUPE
Employers also have several obligations under TUPE. These include:
- Informing and consulting employees: Employers must inform and consult employees or their representatives about the transfer and any measures that may affect them. This should be done long enough before the transfer to allow for consultation.
- Providing employee liability information: The outgoing employer must provide the incoming employer with detailed information about the transferring employees and their employment terms and conditions.
- Preserving employment terms and conditions: The incoming employer must preserve the employees’ terms and conditions of employment.
- Protection against dismissal: The incoming employer cannot dismiss employees because of the transfer unless there is an economic, technical, or organisational reason requiring changes in the workforce.
Understanding TUPE Transfers: Key Points
Understanding TUPE transfers can be complex, but there are a few key points to remember:
- TUPE applies to all businesses, regardless of size.
- Employees’ terms and conditions of employment must be preserved during a TUPE transfer.
- Employers must inform and consult employees about the transfer.
- Dismissal because of a transfer is automatically unfair, unless there is an economic, technical, or organisational reason requiring changes in the workforce.
In conclusion, TUPE transfers are designed to protect employees when a business changes hands. They ensure that employees’ terms and conditions of employment are preserved, and they place several obligations on employers. Understanding TUPE transfers, employee rights, and employer obligations is essential for any business owner or HR professional.
