TUPE Transfer Compliance Check for UK Employers

The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) apply whenever a business, or part of one, changes hands as a going concern, and whenever a service is outsourced, brought back in-house or moved to a new contractor (a “service provision change” under regulation 3). Where TUPE applies, the employees assigned to the transferring work move automatically to the new employer on their existing terms, with their continuity of service, under regulation 4. The incoming employer also inherits most liabilities, including past discrimination or unpaid wage claims. Changing terms or dismissing staff because of the transfer is void or automatically unfair unless there is an economic, technical or organisational (ETO) reason entailing changes in the workforce (regulations 4(4) and 7).

Both employers have strict information duties. The outgoing employer must give the new employer employee liability information at least 28 days before the transfer (regulation 11), and both must inform, and where measures are proposed consult, appropriate representatives of affected staff long enough before the transfer (regulation 13). Failing to inform and consult can cost up to 13 weeks’ pay for every affected employee, with the outgoing and incoming employers jointly and severally liable (regulation 15). Small businesses with fewer than 50 employees, or any transfer of fewer than 10 employees, may consult staff directly when there are no existing representatives (regulation 13A, for transfers from 1 July 2024).

Use this free tool to check whether TUPE applies to your business sale, purchase or outsourcing, whether you are meeting the employee liability information and consultation deadlines, and what to fix before staff transfer.