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.