quote
menu

Tupe regulations: an SME guide to Tupe transfers


Companies selling their business or outsourcing services can come unstuck under Tupe. Our guide should help you stay on the right side of the law.

 

What is Tupe?

Tupe is the Transfer of Undertakings (Protection of Employment) Regulations 2006. Protecting employees where their work transfers from one entity to another, it applies:

  • where a business is sold; and
  • where there is a ‘service provision change’ with an activity being outsourced; moved from one contractor to another; or brought back in-house.

The employment of individuals engaged by the seller or the client (the Transferor), and who are ‘assigned’ to the relevant activity, will transfer to the buyer or the new contractor (the Transferee).

Tupe law

Jemma O’Reilly, principal associate at Wragge Lawrence Graham & Co LLP, outlines the key dos and don’ts.

  • Do think about it early. Scope out whether TUPE might apply, identify the employees who will be affected by it and consider what implications the transfer might have for them.
  • Do comply with the duties to inform and consult with employee representatives or risk significant penalties.
  • Do remember to provide employee information to the transferee if you are a transferor.
  • Don’t make plans to dismiss employees or change their terms and conditions of employment (including relocating them) without careful thought. TUPE provides employees with enhanced protection here.
  • Do decide what risk and liability you are prepared to accept and agree appropriate contractual provision for it. Most liabilities and obligations related to the employees automatically transfer to the transferee and so the transferee will need to obtain protection from the transferor covering matters arising before the transfer.
  • In a service provision change situation, don’t forget to think about what will happen when the services agreement terminates and do make appropriate contractual provision for it.

For more guidance please see:

 

Related Articles

Moving Premises and Business Energy

We know that moving into new businesses premises can be stressful and important tasks, such as organising your...

Read More

Deemed Contract Rates

What are Deemed Contracts? A Deemed Contract is an informal agreement which may be entered into should your bu...

Read More

Out-of-Contract Rates

Out-of-Contract rates Out-of-Contract rates are applied by business energy suppliers when customers have come ...

Read More
Excellent, 9.7 / 10

A lovely lady called Bhavni phoned me …

"A lovely lady called Bhavni phoned me very quickly after I went online. She couldn't have been more helpful, explaining all the different rates for me. She managed to save me a huge amount per year - gave me her direct phone number if I needed to phone again - like gold-dust! even gave me a termination letter to send to my supplier. Couldn't have been easier and will definitely use again - and hope I get to speak to Bhavni again. Thanks again"

This review was posted by Julie Dickie on the 17th of January 2018

Excellent service and hassle free

"Excellent service and hassle free, Jessica Purnell handled everything for me and got us a great deal, even giving advice on how to cancel the previous contract. Thank You"

This review was posted by Neville Blenkinsopp on the 17th of January 2018

Brilliant service

"Brilliant service - very quick to the point and explained everything very well! Would recommend to anyone who is looking to change their electricity supplier."

This review was posted by Jess on the 17th of January 2018

Excellent service straight to the point …

"Excellent service straight to the point and the process was painless!"

This review was posted by Nick K on the 16th of January 2018

I wanted to switch energy supplier as …

"I wanted to switch energy supplier as had been with current one for a number of years but prices had increased quite a lot. I dealt with an extremely helpful person called Bhavni Manek, she made this a very quick and easy experience and would use the company again if they are all as great as she was"

This review was posted by amanda green on the 15th of January 2018