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Buying a business? Find out about TUPE Regulations

16th November 2016

The TUPE Regulations apply where there is a sale of all or part of a business or where a service provision change occurs.

In a TUPE transfer, employees who are assigned to the part of the business or contract which is transferring automatically transfer to the new employer on the same terms and conditions of employment together with all rights, liabilities etc relating to their employment.  There are only very limited circumstances in which a new employer can change the transferring employees terms of employment.  Employees who are not permitted to transfer are likely to bring unfair dismissal claims.

Both companies are obliged to inform and, where appropriate, consult recognised trade unions or elected employee representatives:

Inform:  Certain information, such as the reason for the transfer and any envisaged measures, must be provided to the representatives long enough before the transfer to enable the transferring employees to be consulted about it.

Consult:  The duty to consult only arises where an employer envisages taking measures in relation to affected employees.  Measures include change of location, pay date, redundancies etc.

Failure to comply with the obligation to inform and consult can result in compensation of up to 13 weeks’ uncapped pay being awarded for each affected employee. Both companies can be held to be jointly and severally liable.

Employee liability information

The outgoing employer must provide certain information to the new employer, such as identity of employees and disciplinary records, not less than 28 days before the transfer.

Compensation for a failure to comply with this obligation is based on losses caused by the failure, with the minimum award being £500.

For further information please contact: Steven Harte


Tel: 0141 332 5666

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