The Transfer of Undertakings (Protection of Employment) Regulations 2006 are the latest incarnation of TUPE. This is a European based piece of legislation which gives rights to employees (and possibly now workers) on the transfer of a business or a service provision change.
TUPE means that employees are automatically transferred with a business, on a sale of assets for example. It also applies to a service provision change on contracting-out/taking back in services or for contractors when a new contractor is appointed.
There is protection for employees including in relation to terms of employment and protection against dismissal on a transfer.
This is a complex piece of legislation and applies to a transfer of a business of any size, not just big corporates. As well as individual rights, there are also rules around consultation which can carry significant financial penalties if not complied with.
We have extensive experience of advising on TUPE transfers, the legislative requirements and possible areas of litigation. If you are selling a business or looking to change a contractor, then we can guide you through the process. There is much litigation around what might constitute a transfer and which employees are affected.