8. Contract changes following a business transfer (TUPE)

Where a business or part of a business is transferred from one employer to another, or a service is outsourced, or an outsourced contract is retendered, the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) operate to transfer the employment contracts of all employees “assigned” to the business immediately before the transfer, unless they object. All terms and conditions will transfer intact to the new employer, except occupational pensions. TUPE applies automatically. Without these protections, most employees who worked within a business which was transferred would be able to be made redundant

The protections provided by TUPE were watered down in 2014 by amendments made by the Coalition government, although these changes do not currently apply in Northern Ireland. Although the TUPE Regulations are based on EU law, Brexit has not led to any significant change to the law.

A dismissal in breach of TUPE is automatically unfair but employees need two years’ service to bring a claim. This is a complex area of law and this Chapter aims to provide a brief signpost towards the key issues. For more information, see LRD’s annual publication, Law at Work.