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.
We can support your businesses transition during a business transfer and eliminate issues and pitfalls that may occur, protecting your business.
Free employment law clinic for businesses
Every Monday we run an ‘online employment law clinic’ for small businesses in South Yorkshire. If you have a question regarding employment law within your business email [email protected] on a Monday between 9am – 4pm and one of our employment experts will respond to you on the same day.
The Employment for Businesses team
Our Employment team, is renowned for its no-nonsense, energetic and pragmatic approach. Its success isn’t just down to its extensive knowledge of the law, it’s also the way we pride ourselves on putting our client first, getting to know you and understanding what you want to achieve. To get the best results for you and achieve commercially sensible outcomes it is essential that we understand your business.
The team is highly regarded, with recommendations from many clients. The professional guide, Legal 500, also ranks Howells employment team highly in Sheffield and South Yorkshire;
Legal 500 2018
"The 'friendly and approachable' employment team at Howells is known primarily for its representation of employees in tribunal claims. Clare Fowler and Tom Bernard jointly head the team, which is supported by head of civil litigation Graham Hogarth. Fowler has particular experience delivering discrimination advice, while Bernard is recommended for his 'balanced advice, thorough and clear communication' in relation to claims. The team has recently handled disability discrimination claims, in addition to unfair dismissal claims under TUPE. The practice also has experience acting for SMEs, including advising one employer on a complex redundancy matter."