Business Transfers & TUPE
When businesses or contracts for services change hands, the employees’ contracts may be protected by legislation called the Transfer of Undertakings (Protection of Employment) Regulations, known as TUPE. The aim of the legislation is to stop a new employer giving employees less advantageous contracts after they take over, and to ensure that employees working on a service contract are kept on, on the same terms and conditions, when the contract is awarded to a new company.
Whether or not there has been a TUPE transfer can be a complex area, so you would be wise to seek advice. If there is a TUPE transfer, there are specific requirements for communication and consultation with employees. Also, you will be unable to change the transferred employees’ contracts after the transfer, just to harmonise with existing employees.
ForHR can give you expert advice on dealing with TUPE, having been involved in a very large number of such transfers at both strategic and operational levels.
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