A Basic Guide to Understanding Transfer Undertakings Protection of Employment (TUPE)

Employment law is an extensive field that covers the interests of both employer and employee. TUPE falls under employment law; its primary purpose is to guard employees if the company they work for changes hands. 

It’s not uncommon for businesses to sell and transfer some employees to a new company; this is where TUPE comes into play. TUPE moves employees with all liabilities related to them from the previous employer to the new one. The HR consultant in any company should take the TUPE course to understand operation law and be able to measure when a client needs the services.

All About TUPE

The Transfer of Undertakings (Protection of Employment) is a set of rules that protect employees if their employer sells the business to a new entity. TUPE came into existence in 1981 but was adjusted in 2006, and in 2014, more amendments were in place. It is a risky legislation that the UK embraced to implement a directive by the EU. 

As a business owner, you may need to know when a TUPE situation will hit you. Therefore, understanding TUPE helps you know your responsibilities when tendering a new contract during a Transfer of employment.

Why You Need to Know About TUPE

TUPE is relevant to many businesses, and employers must understand issues that can arise when selling a company. For big companies with in-house human resource departments, the employer can seek guidance within his company. 

However, startups without human resources can seek guidance from an HR consultant to handle any issues that may arise in the process. Here’s how TUPE applies.

  • When an employer sells or buys a business 
  • When seeking a change in service provision or outsourcing. It can apply when services are moved from one customer to a contractor or external contractor to another. 
  • Take over a premises lease and operate the same business from there.

Who Transfers Under Tupe?

When a company changes hands, it’s crucial to identify which employees will undergo transfer and their liabilities. For businesses that outsource some frameworks, it may be challenging to determine who is to transfer or not. 

Issues can arise if some employees are absent during the transfer or if the health and safety consultant wants to include injured employees. With some employees absent, ascertaining who is to transfer with the business is a significant challenge. 

How TUPE Applies

Only the employees on permanent or fixed contracts are eligible for a TUPE transfer. Casual and agency workers are omitted. Employees working on temporary arrangements in a different department for another company can complicate the entire situation. Why? You may wonder. 

The HR must determine if the assignment of these employees in or out of the company was during the transfer and the length of the work. Before the transfer happens, the transferor will provide employee liability information to the transferee.

The Bottom Line

Tupe is a one-day course that benefits business owners, HR managers, and directors. Understanding TUPE helps them understand this intricate legislation to ensure all parties are treated fairly.