TUPE - Transfer of Undertakings and Protection of Employment
TUPE is not to be confused with redundancy, though it sometimes is, as the effects can be similar. What are your obligations when you merge/acquire another business? Unless specific legal exceptions arise, you ‘inherit’ all the employees of the other business on their existing terms. We can advise on this complex area of law, including consultation with those affected.
Where mergers and acquisitions arise in the commercial environment, and service provision changes occur in the public sector, in most circumstances the provisions relating to the Transfer of Undertakings (Protection of Employment) Regulations 2006 will apply (TUPE). This law is intended to protect the rights of employees on being transferred from one business to another. Ideally employees will move across on terms and conditions no less favourable than those they experienced before (the seamless transfer). However, it may be necessary to alter arrangements or alternatively terminate employment for an 'economic, technical or organisational' (ETO) reason, which is akin to redundancy. This is commonly regarded as one of the most technically difficult areas of employment law, involving interpretation of complex legislation.