There are two situations when the TUPE regulations may apply; business transfers and service provision transfers. In business transfers The TUPE regulations apply if a business or part of a business moves to a new owner or merges with another business to make a brand new employer. A part of a business might for example be a distribution function of a larger organisation. In service provision transfers The TUPE regulations apply in the following situations: a contractor takes over activities from a client known as outsourcing. They carry with them their continuous service from the outgoing employer, and should continue to enjoy the same terms and conditions of employment with the incoming employer. Any such changes will be void.
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There are two situations when the TUPE regulations may apply; business transfers and service provision transfers. In business transfers The TUPE regulations apply if a business or part of a business moves to a new owner or merges with another business to make a brand new employer.
A part of a business might for example be a distribution function of a larger organisation. In service provision transfers The TUPE regulations apply in the following situations: a contractor takes over activities from a client known as outsourcing.
They carry with them their continuous service from the outgoing employer, and should continue to enjoy the same terms and conditions of employment with the incoming employer. Any such changes will be void.
Employers seeking to change terms which are unrelated to the transfer should seek legal advice to ensure this is the case and read the Acas leaflet If an employee leaves and claims constructive dismissal due to changes in their contract which are significant and fundamental they will need to have the qualifying length of service to do this.
Disclosure of employee liability information The outgoing employer must provide information about transferring employees to the incoming employer, and this is called Employee Liability Information. The following information must be provided: the identity and age of the employees who will transfer information contained in the written statement of those employees details of any disciplinary action taken against an employee in the last two years details of grievances raised by an employee in the last two years instances of legal actions taken by employees against the outgoing employer in the last two years any court or employment tribunal claims information regarding any collective agreements The information must be accurate, up to date and secure, and for transfers which took effect from 1 May the information must be provided not less than 28 days before the transfer.
For transfers which took effect before 1 May the information should have been provided not less than 14 days before the transfer. Where there are no recognised trade unions or employee representatives in place, employers must arrange elections amongst the affected employees to elect representatives to consult about the transfer.
The information must be given in writing and include: the fact that the transfer is going to take place, approximately when and why. From 31 July , micro businesses those with fewer than 10 employees overall are not required to elect representatives to inform and consult where there are no existing recognised trade unions or elected employee representatives.
However, they must still inform and consult directly with each individual employee regarding the transfer. Dismissal and redundancies Employers are often able to minimise or prevent redundancies and other dismissals when transfers take place.
However, there will be occasions when they cannot be avoided. If an employee is dismissed either before or after a transfer and the sole or principal reason for the dismissal is the transfer, it will be automatically unfair. Employees who believe that their terms and conditions have been substantially changed to their detriment before or after a transfer have the right to terminate their employment and claim constructive unfair dismissal at a tribunal. TUPE classifies these types of resignations as dismissals.
Where a potential redundancy situation arises as a result of a transfer, employers must consult directly with affected employees and indirectly through representatives when the incoming employer is making or intending to make 20 or more redundancies within a day period.
Where there are fewer than 20 employees being made redundant within a day period, there is still a legal requirement to consult with employees individually but there are no prescribed time limits in which to do so.
Employers must first consult with a recognised trade union where they exist, and if there is no recognised union then with elected employee representatives. See more information on redundancy.
Collective agreements Collective agreements in place at the time of the transfer also transfer to the incoming employer. These include terms and conditions of employment negotiated through collective bargaining as well as the wider employment relations arrangements.
Examples include the collective disputes procedure, time off facilities, training for union representatives, negotiated redundancy procedures or job security arrangements and flexible working arrangements. Terms and conditions from collective agreements may be renegotiated after one year provided that overall the contract is no less favourable to the employee. In some circumstances contractual changes arising from new collective agreements agreed by the outgoing employer are not required to be incorporated after a transfer.
Transfer of undertakings (TUPE): an introduction
TUPE - a practical guide to business transfers Overview This full day course provides a practical, in-depth look at the TUPE process from start to finish and draws upon current legislation and best practice when preparing for business transfers. Business need Business transfers, outsourcing, being sold off, privatised — whatever you call it, TUPE transfers can be complex and stressful for both employers and employees. TUPE Regulations give employees certain rights whenever a business or part of a business is sold or changes hands. Being aware of the rights, responsibilities and good practice in regards to TUPE will help you better manage the process and minimise the stress and disruption it can cause for your business and employees. Delegates attending this event will gain an understanding of the TUPE Regulations as well as employer responsibilities and employee rights. Delegates will also receive practical tips on the process of conducting a business transfer.
Handling TUPE transfers: the Acas guide