If you are an employer contemplating taking over a business we would strongly advise that you contact our Employment Team for advice.
What is TUPE?
The TUPE Regulations (Transfer of Undertakings) apply to situations where there is a change of employer due to a relevant transfer, often the transfer of the whole or part of a business, and the business retains its identity after the transfer.
The rights of employees are protected in these situations where their employer has been taken over as a “going concern”. The new employer effectively takes over all the rights and liabilities which existed between the employee and the previous employer.
When a transfer falls under the TUPE Regulations there are employment law consequences for both the original employer (the transferor) and the new employer (the transferee).
The transferor has an ongoing duty to inform and update the transferee on a number of issues including providing information about all the employees and their contracts of employment and any pending or recent employment litigation.
Employers should also be aware that there is potential for unfair dismissal claims to arise if the TUPE Regulations are not adhered to. In particular, any dismissal by a transferor or transferee for a reason to do with the transfer may be deemed automatically unfair.