TUPE Regulations

The term ‘TUPE Regulations’ refers to the Transfer of Undertakings (Protection of Employment) Regulations 2006 as amended by the Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014.

These regulations protect employees’ terms and conditions when a business is transferred from one owner to another. They apply to business transfers and service provision transfers of all sizes and to both the outgoing employer and the incoming employer.

Under the regulations, the employees of the outgoing employer become employees of the incoming employer automatically, carrying with them continuous service and terms and conditions from the outgoing employer. This includes, for example, responsibility for historic liabilities such as those relating to work-related injuries.

The regulations then protect against change or harmonisation of those terms and conditions for an indefinite period if the sole or principal reason for the change is the transfer from one employer to another.

Representatives of the employees have the right to be informed about the transfer of employment and to be consulted about measures that either employer envisages taking.

The Tupe Regulations have come under particular attention recently with the collapse of Carillion, where transfers have taken place, and employees have been taken on, in order to give continuity of service and to protect joint venture agreements. Companies taking part in such transfers are advised to ensure they fully understand the obligations and liabilities they are accepting.

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