What Is a TUPE Transfer?
The Transfer of Undertakings (Protection of Employment) Regulations (TUPE) are UK laws designed to protect employees' rights during business transfers. TUPE ensures that employees retain their existing terms and conditions, providing continuity in transitions like mergers, acquisitions, and outsourcing changes. For global employers operating in the UK, non-compliance can result in serious legal and financial consequences.
TUPE applies in two main scenarios: business transfers, where one employer moves all or some of its business to another employer, and service provision changes (SPC), such as outsourcing, insourcing, or a change of service provider. TUPE does not apply to share-only or asset-only transfers.
To determine if TUPE applies, review the nature of the transaction. If employees are moving to a different employer, TUPE is likely relevant.
TUPE Transfer Checklist
A well-managed TUPE process improves communication, minimises disruption, and upholds rights on both sides. A clear checklist helps guide that process, which typically unfolds across three stages: pre-transfer, mid-transfer, and post-transfer.
Pre-Transfer
One of the first steps is confirming whether TUPE applies and identifying the employees affected. This can involve both business transfers and service provision changes, as defined above. It’s also important to clarify when TUPE does not apply—such as in share-only transactions.
Once confirmed, communication becomes critical. Employers must inform employees about the transfer in advance—ideally at least four weeks prior—and provide regular updates. This includes explaining the reasons for the transfer, its implications, and how it affects each employee, whether or not they are transferring.
Employers also need to consult with recognised trade unions or elected employee representatives. If no such body exists, representatives must be elected for this purpose.
Planning the transition with the new employer is essential. Both parties should agree on the list of employees transferring, the transfer date, and whether meetings between employees and the incoming employer will take place. A detailed transfer plan should be prepared and shared with all employees and their representatives.
Contracts of employment must be reviewed carefully, as they transfer in full. This includes entitlements tied to seniority, benefits, and even liabilities. Employers should also prepare and share Employee Liability Information (ELI) at least four weeks before the transfer. This information includes identity details, terms of employment, disciplinary records, and any pending claims.
Mid-Transfer
On the transfer date, contracts and employment history move to the new employer automatically. The incoming employer must formally notify affected employees that their contractual rights and terms remain unchanged.
All employment conditions transfer intact, including salaries, job roles, benefits, and collective agreements. Pensions built up before the transfer are protected. Personal pension contributions must continue, and if a workplace pension does not transfer, a reasonable alternative must be offered.
Any dismissals made solely due to the transfer are considered unfair under TUPE Regulation 7. Redundancies may only proceed if an economic, technical, or organisational (ETO) reason exists, such as a business restructure or site relocation.
Post-Transfer
Maintaining communication after the transfer is vital. The new employer should focus on employee onboarding—introducing line managers, clarifying workplace policies, and facilitating a smooth cultural transition. Any contractual changes must be clearly documented.
Both original and new employers are responsible for monitoring how the transition unfolds. This includes evaluating employee sentiment, addressing emerging issues, and staying compliant with TUPE regulations over time. Continued consultation beyond the minimum legal requirements can improve retention and performance.
Partnering with an Employer of Record provider like Omnipresent can support this process, ensuring compliance and helping to maintain trust across your workforce.
Key Employer Responsibilities
Under the automatic transfer principle, employees retain their terms and continuity of service. This includes all statutory and contractual benefits, from holiday pay to health insurance and bonus schemes.
Changes to employment contracts made solely because of the transfer are not valid unless:
- They are already permitted in the existing contract.
- They are agreed to by the employee.
- They are based on valid ETO grounds.
Employers must notify affected employees in advance and document all consultations. Employees must understand what’s happening, when, why, and how it impacts them. This helps prevent legal claims and supports smoother integration.
Why Use a TUPE Checklist?
Using a structured checklist helps employers:
- Maintain compliance
- Avoid legal and financial risks
- Build employee trust
- Execute smoother transitions
The TUPE process is complex, but with clear planning and communication, employers can manage it effectively and ethically.
