What is TUPE?
TUPE refers to the Transfer of Undertakings (Protection of Employment) Regulations 2006. These regulations apply to businesses of all sizes and protect employees’ rights when the organisation, business or service they work for transfers to a new employer.
What does TUPE cover?
Broadly speaking, TUPE rules cover the transfer of employees’ jobs over to the newly formed company, including their terms and conditions, to ensure that continuity of employment is maintained.
The key to successful TUPE is communication. If staff are kept fully informed throughout the process they will feel included and more likely to embrace the changes…
When does TUPE apply?
There are two main scenarios where TUPE regulations apply:
- Business Transfers – this is when a business, or part of a business, is sold or merges with another business to effectively form a new employer
- Service Provision Transfers
- where a contractor takes over a service previously provided in-house (for example, catering or cleaning)
- where a contract ends and is taken over by a new contractor (also known as re-tendering)
- where a previously out-sourced service is taken over and provided in-house
The TUPE process
As you would imagine, the transition of staff between organisations can be complicated. You have to consider all of their existing terms and conditions, including things like holiday entitlement and pension provisions. Some staff may not want to transfer to the new employer and will resign, others may be made redundant during the process. You need to make sure that working conditions aren’t significantly different or worse – if so employees can object to the transfer or resign and claim constructive dismissal. There’s a huge amount to consider and the process can be daunting.
The key to successful TUPE is communication. If staff are kept fully informed throughout the process they will feel included and more likely to embrace the changes. As we have discussed elsewhere, employee engagement is vital for the success of your business, and maintaining loyalty, motivation and commitment through a transparent TUPE process will ensure continued staff engagement and a positive experience for your business.
If your business is changing and you want help to manage TUPE, get in touch. We can start to help you as soon as you call.