TUPE Regulations
TUPE (Transfer of Undertakings Protection of Employment Regulations 2006) automatically transfers employees and their terms when a business or service is transferred. Dismissal because of the transfer is automatically unfair unless for an ETO reason.
Last updated: February 2025
28 days before transfer
Employee info deadline
Up to 13 weeks pay per employee
Failure to inform penalty
Automatically unfair
Dismissal protection
What the Law Says
TUPE 2006 implements the EU Acquired Rights Directive (retained in UK law). Regulations 4-5 transfer contracts of employment automatically. Regulation 7 makes transfer-related dismissals automatically unfair unless for an economic, technical or organisational (ETO) reason entailing changes in the workforce. Both old and new employers must inform and consult affected employees.
Your Obligations as an Employer
- Transfer all employees on their existing terms and conditions
- Inform and consult affected employee representatives
- Provide employee liability information to the new employer at least 28 days before transfer
- Recognise transferred trade union recognition agreements
What to Include in Contracts
Contracts cannot waive TUPE rights. Include clauses in business sale agreements covering employee liability information, indemnities for pre-transfer liabilities, and the consultation process.
View related contract templateCommon Mistakes
- Harmonising terms and conditions immediately after transfer
- Dismissing employees to make a transfer more attractive
- Not consulting employee representatives before the transfer
FAQ
Can terms and conditions be changed after a TUPE transfer?
Changes to terms because of the transfer are void under Regulation 4(4), even if the employee agrees. Changes unconnected to the transfer are permitted if lawfully agreed. After a reasonable period, changes for an ETO reason may be possible.
Does TUPE apply to outsourcing and insourcing?
Yes. TUPE applies to service provision changes including outsourcing, insourcing, and re-tendering of contracts, provided there is an organised grouping of employees whose principal purpose is carrying out the activities being transferred.
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Get Started FreeThis is guidance for UK employers, not legal advice. For complex employment law matters, consult a qualified employment solicitor or ACAS.
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