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How to Handle TUPE Transfers

Handle a TUPE transfer by identifying affected employees, informing and consulting employee representatives, providing employee liability information to the new employer, and ensuring all employment terms transfer automatically on the transfer date.

Last updated: February 2025

Step-by-Step Guide

1

Identify whether TUPE applies

TUPE applies to business transfers (sale of a business as a going concern) and service provision changes (outsourcing, insourcing, retendering of contracts).

Tips
  • •TUPE can apply even if only a small number of employees are affected.
2

Provide employee liability information

The old employer must provide the new employer with prescribed employee information at least 28 days before the transfer.

Tips
  • •Include identity, age, employment terms, disciplinary records, and any claims.
3

Inform and consult employee representatives

Both old and new employers must inform appropriate representatives about the transfer, its reasons, and any planned measures affecting employees.

Tips
  • •If there are no existing representatives, you must arrange for elections.
  • •Consultation must be meaningful, not just a notification.
4

Effect the transfer

On the transfer date, employees automatically transfer to the new employer on their existing terms and conditions. Continuity of employment is preserved.

Tips
  • •You cannot dismiss employees solely because of the transfer.
5

Manage post-transfer integration

The new employer inherits all employment obligations. Changes to terms connected to the transfer are void unless there is an economic, technical, or organisational reason.

Tips
  • •Seek legal advice before making any changes to transferred employees' terms.

Legal Requirements

The Transfer of Undertakings (Protection of Employment) Regulations 2006 (as amended in 2014) protect employees when a business or service provision changes hands. Employment terms transfer automatically, continuity is preserved, and dismissals by reason of the transfer are automatically unfair.

Common Mistakes

Failing to inform and consult, which can result in a penalty of up to 13 weeks' pay per affected employee
Attempting to change employees' terms and conditions because of the transfer
Not providing employee liability information on time, resulting in a minimum award of £500 per employee

Template / Example

TUPE Information Letter: We write to inform you that [Business/Service] will transfer from [Old Employer] to [New Employer] on [Date]. Your employment will transfer automatically on the same terms and conditions. Your continuity of service will be preserved. A consultation meeting will be held on [Date].

When to Get a Solicitor

Always. TUPE is one of the most complex areas of UK employment law. Both the old and new employer should take legal advice to ensure compliance and avoid significant financial penalties.

FAQ

Can employees refuse to transfer under TUPE?

Yes. An employee can object to the transfer, but this terminates their employment on the transfer date. They are not treated as having been dismissed, so they have no right to redundancy pay or unfair dismissal claims unless circumstances apply.

Can the new employer change terms and conditions after TUPE?

Changes connected to the transfer are void unless there is an economic, technical, or organisational (ETO) reason entailing changes in the workforce. Changes unconnected to the transfer follow normal contractual variation rules.

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This is guidance, not legal advice. Consult a solicitor for complex matters.

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