TUPE Transfers: What UK Employers Need to Know

TUPE — the Transfer of Undertakings (Protection of Employment) Regulations — applies when a business or part of a business transfers from one employer to another, or when a service changes hands. If TUPE applies, employees of the transferring business automatically transfer to the new employer on their existing terms and conditions. You cannot dismiss them because of the transfer.

The key obligations for the outgoing employer are: informing and consulting with employee representatives about the transfer, its implications, and any measures the incoming employer intends to take; and providing employee liability information to the incoming employer at least 28 days before the transfer date. Failure to inform and consult can result in an award of up to 13 weeks' pay per affected employee.

For the incoming employer, the obligation is to honour the transferred employees' existing terms and conditions — at least until any agreed variation is made through proper consultation. Changes made "in connection with" the transfer are void unless for an economic, technical, or organisational reason. This is the area where most TUPE-related tribunal claims arise. Mellow's workforce planning module tracks employee records through TUPE events and flags any terms changes that may need legal review.