When a business is sold or a contract for services is moved to a new supplier, employees in the affected business risk losing their jobs. This is why the TUPE Regulations were first introduced as they protect employees when there is business change.
The TUPE Regulations impose wide ranging obligations on employers as well as onerous financial penalties if the TUPE Regulations are breached.
The main protection is that employees are entitled to transfer to a new employer with their continuity of service and terms of employment intact. They are also protected against unfair dismissal and against changes being made to their terms of employment by the new employer.
In addition, there must be a proper process carried out of information sharing and consultation with employee representatives whenever there is a transfer under the TUPE Regulations.
Employees who are not treated properly under the TUPE Regulations are entitled to financial compensation which can be significant. The TUPE Regulations can even protect employees in an insolvent business if a new business takes over.
We provide advice to and represent employee representatives and groups of employees where there have been failures under the TUPE Regulations, particularly in relation to claims and remedies arising out of failure to comply with information and consultation obligations. Our team is also experienced in advising executives in relation to all aspects of TUPE in the context of mergers and acquisitions.