TUPE

Under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (as amended), a ‘Transfer of an undertaking’ may occur when:

• there is a transfer of the whole or part of an undertaking; and
• the transferor and transferee are not connected.

An ‘undertaking’ includes a business, trade or profession, and can be public or private. The regulations apply to both contractual transfers and transfers by way of asset.

When an undertaking is transferred, the employment rights of employees assigned to that undertaking normally transfer with it. This means that their employment contract, terms and conditions will continue apply after the transfer has taken place. The purpose of these regulations is to protect employees from being unfairly dismissed or disadvantaged when the business they work for changes hands.

There are a number of exceptions to the general rule that employee’s rights transfer with the undertaking. These include situations where the transfer is due to a reorganisation within the same company, or where the contract of employment expressly states that it will not transfer in the event of a sale.