How does TUPE affect terms and conditions?

Broadly speaking, TUPE preserves the continuity of employment and the terms and conditions of transferring employees (except relating to certain occupational pension rights). On the transfer date, employees of the transferring employer (the transferor) automatically become employees of the new employer (the transferee) without any change to their terms and conditions. The new employer cannot pick and choose which employees to take on. It is as if the contracts of employment of the transferring workforce had originally been made with the new employer. The only exception relates to occupational pension rights which do not transfer (Regulation 10(1) and (2)). This is explained in Chapter 5.