If a business is taken over by another company and retains its identity or when a company decides to outsource certain services or functions to a new company, this is a transfer under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (known as ‘TUPE’). These regulations give protection to employees throughout the transfer process.
Any member of staff that is working within that business that is transferred or assigned to the function that has been outsourced, should transfer to the new employer on the same terms and conditions.
If you are transferring your business or you are taking over a new business then you are subject to obligations under TUPE. There is an obligation on you to inform and consult all staff that may be impacted by the transfer about what will happen. The business which is taking over is also obliged to provide information to the business they are taking over about their staff, who will transfer and their terms and conditions and working practices.
Employees are protected from being dismissed because of a business transfer under TUPE unless there is an economic, technical or organisational reason justifying a change in the workforce. Furthermore, any employee who transfers to the new business, does so on the same terms and conditions, thus any change to their contract that you wish to impose is likely to be void.
TUPE is an incredibly complex area of employment law with many pitfalls for those who are inexperienced in handling the process. We would recommend that as soon as a business transfer is raised, that you seek advice to ensure that you comply fully with your obligations, however we are here to help.
Our employment team can support your businesses transition during a business transfer and eliminate issues and pitfalls that may occur, protecting your business.
There is lots of information online regarding what support and information there is available for businesses during the Corona Virus outbreak, many of it is hearsay and gossip. Keep up to date with Employment Law in regards to the Coronavirus outbreak here.
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