The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) protect employees in the UK when their employment transfers to a new employer, typically due to a business sale, merger, or service provision change.
When TUPE Applies
TUPE applies in two primary situations:
Business Transfers
When a business (or part of it) moves from one employer to another. This includes mergers, acquisitions, or internal restructurings where employee roles are transferred to a new entity. TUPE protects workers' existing contracts and ensures continuity of service.
The regulation applies regardless of whether the companies involved are headquartered in the UK—what matters is that the transferring business operates in the UK.
Service Provision Changes (SPCs)
TUPE also applies when:
- Services previously performed in-house are outsourced to a contractor.
- Previously outsourced services are brought back in-house.
- A contract with one provider ends and is awarded to a new provider.
These scenarios ensure that long-term contractors and service workers enjoy protections comparable to employees.
When TUPE Does Not Apply
TUPE does not apply in the following cases:
- Transfers within the public sector (though other protections may apply).
- Situations involving the provision of goods rather than services.
- Short-term or one-off contracts, such as a single event or emergency project.
- Transfers where there is no change in employer identity (e.g., share-only purchases).
Employee Rights and Employer Obligations
Continuity of Employment
When TUPE applies, the new employer inherits all employee rights and obligations:
- Statutory rights
- Unpaid wages or bonuses
- Holiday entitlements
- Employment claims or disputes
- Length of service
These protections ensure that workers are not disadvantaged by the change in employer.
Information and Consultation
Employers must:
- Notify employees about the transfer in advance.
- Share information with employee representatives (or elect them if not in place).
- Provide Employee Liability Information to the new employer (e.g., employment terms, disputes).
Post-Transfer Terms and Changes
Employees' terms and conditions remain intact. Changes are only allowed when:
- They are unrelated to the transfer.
- The employee agrees.
- There is an economic, technical, or organisational (ETO) reason, such as restructuring.
Redundancy Rights
Redundancies before a transfer are not permitted if requested by the incoming employer. Post-transfer redundancies are allowed only if:
- A genuine redundancy situation exists.
- It is based on valid ETO grounds.
TUPE FAQs
How long does TUPE last after transfer?
TUPE protections do not have an exact expiration date. The rights and obligations continue as long as the terms remain unchanged, including continuity of service.
How long does a TUPE transfer take?
The process duration varies but requires at least four weeks’ notice to employees. In practice, preparation and consultation should begin well before that.
How much notice is required for a TUPE transfer?
There is no fixed statutory notice period, but best practice recommends at least four weeks before the transfer.
Can an employee refuse a TUPE transfer?
Yes. Employees may object. In doing so, their employment typically ends on the transfer date, but they are not treated as dismissed—they simply forfeit the right to transfer.
What happens if I refuse to TUPE transfer?
Your employment ends on the day of the transfer. You won’t receive redundancy pay or be able to claim unfair dismissal, since you technically resign.
Can I be made redundant after a TUPE transfer?
Yes, but only under ETO grounds. If redundancies are made solely because of the transfer, they are likely to be deemed unfair dismissal.
Do agency workers transfer under TUPE?
Generally no. TUPE only applies to employees, not agency workers. However, their status can be reviewed based on the nature of the contract.
Do collective agreements transfer under TUPE?
Yes, if the transferring employees remain a recognisable group, collective agreements continue to apply.
Do pensions transfer under TUPE?
Occupational pensions do not transfer, but other arrangements (e.g., personal pensions) may be protected. Employers must offer a suitable alternative.
Do policies and procedures transfer under TUPE?
Only contractual policies transfer. Internal procedures not referenced in the employment contract may not be legally binding post-transfer.
Do recognition agreements transfer under TUPE?
Yes, if the transferred employees continue to operate as a distinct group within the new organisation.
Do redundancy terms transfer under TUPE?
Yes. Any redundancy terms that are part of the employment contract transfer. Non-contractual policies may not be binding.
Do zero-hours contracts transfer under TUPE?
Yes. TUPE applies to zero-hours workers if they meet the definition of “employee” under UK law.
Does holiday entitlement transfer under TUPE?
Yes. Accrued and future holiday entitlements transfer automatically, along with any carry-over terms.
