8. Business transfers and service provision change (TUPE)
[ch 8: page 115]The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) are intended to protect the rights of employees on the transfer of the business that employs them where that transfer results in a change in the employer’s identity. TUPE is likely to be triggered by business sales, mergers, inter-company reorganisations, outsourcing, “insourcing” (taking business back in-house) and changes in contractor.
The regulations are designed to preserve the continuity of employment and contract terms of employees of the transferring organisation. TUPE also protects anyone who is dismissed because of the transfer immediately before it takes place. There are special rules about pensions.
Important changes were made to TUPE in 2014, reducing the protection that TUPE provides to employees and making it easier and quicker for incoming employers to change terms and to carry out dismissals for transfer-related reasons. For more information, see LRD’s booklet, TUPE — a guide to using the law for union reps (https://www.lrdpublications.org.uk/publications.php?pub=BK&iss=1897).