Transfer Of Undertakings Solicitors Leeds
What Is Transfer Of Undertakings? (TUPE)
Regulations outlined by law and set to protect the employment conditions and contracts of existing employees as a business is sold on or transferred, or if there is a change in the provision of contracts or employment, is defined as TUPE; the Transfer of Undertakings (Protection of Employment) Regulations.
In easier to digest terms—if a business, or a single branch of a business or franchise, is sold or transferred to new owners, then TUPE protects the rights of all existing employees and the terms and conditions of the jobs they hold. All items are protected by the employee’s contracts under TUPE and should not be changed because of the transfer of ownership, or the operation of the business.
In even simpler terms: all employees’ employment will be maintained and continued retaining all existing terms and conditions.
TUPE introduced 3 strict guidelines to Employment Law:
- Employees of the business transfer to the new business owner. The new owner inherits all responsibilities of welfare and contractual obligations.
- Employees of the business are protected against dismissal.
- Employees of the business,or their representatives,must be kept informed and consulted with regarding their positions during the transfer.
Key areas of transfer include:
- Terms and conditions of contracts.
- Statutory protection – for example, against redundancy and unfair dismissal.
- Liability for breach of duty – for example, existing claims against the previous business owner.
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Regulating A Relevant Transfer
To comply with the TUPE regulations,the solicitor must establish that the transfer is proper and is carried out in accordance with the law. It must be shown that the economic entity has been transferred to the new owners.
Areas that must be considered during the assessment are:
- Transfer of assets
- Transfer of staff
- That business activities and operations before and after the transfer are the same or similar
- Transfer of the business’s customers
- The type of business undertaking
TUPE regulations can also cover:
- Contracting out services
- Changes in services between contractors during a business transfer
- Setting up a franchise
- Business mergers and acquisitions
- Granting of leases
Protecting The Employees’ Rights
A TUPE solicitor is employed to protect employees’ rights during the transition or transfer of a business. It’s the TUPE solicitor’s responsibility to fairly manage of the automatic transfer of employment and the employee’s contracts. Contracts are subject to employee’s right of objection and exclude certain rights in relation to occupational pension schemes.
Wherever employees were previously dismissed by the transfer or in connection to the transfer, your solicitor will oversee any transfer of liability. Any dismissal will automatically be rendered unfair if the reason was due to the transfer. There are exceptions for dismissal; these can involve economic, technical or organisational reasons.
A TUPE solicitor should provide regular information about the transfer of the business by holding meetings with the employees or their representatives.
They will oversee the transfer of employee information and liabilities to the transferee (the new owner) from the transfer or (the previous owner). They will also provide any variation to contracts when a transfer is performed in some cases of insolvency. For solvent transfers, very few reasons merit changes to contracts.
If considered relevant, a TUPE solicitor may transfer the connection or representation of employees to an alternative trade union, or transfer agreements between trade unions and employees where appropriate.
Obligation To Inform And Consult
TUPE laws require the transferring employer to provide updates to all employees of the date, reason and the legal, economic and social implications of the transfer that will affect all employees.
New employers hold a legal duty to employees, to inform them of updates throughout the process. Any changes or additional measures arising from the business transfer must,therefore,be discussed with a representative of the employees.
TUPE provides protection to employees against dismissals not conforming to traditional employment law. All employees holding the qualifying period of service(generally accepted to be of 2 years) will be protected by the laws of unfair dismissal, in relation to the transfer of the business.
Raising A Claim
Employees who feel they are being dismissed unfairly due to the transfer of the business are entitled to raise an employment tribunal claim on the grounds of unfair dismissal. The claim must be raised within 3 months of the dismissal date.
Any failure to keep employees or their representatives informed about the transfer and also of proposals that may affect the employees can carry a compensation award of up to 13 weeks pay for each employee.
Contact Employment Solicitors Leeds Now
You can call on 0113 4334 118 or email for an initial consultation regarding your employment position. We will offer you complete and full advice in easy to understand terms to help you to establish the most likely outcomes for your casein a relaxed and pressure-free environment.
We understand how difficult this time can be,so our expertly trained staff deliver all of our services with empathy and understanding. It is entirely up to you whether you decide to pursue your claim or not. We’re here to help you make those critical decisions backed by years of experience and industry knowledge.