Transfer of Undertakings (Protection of Employment) Regulations 2006

The TUPE Regulations exist to protect employees when the business or service they work for transfers to a new employer. This may happen, for example, when:

• A business is sold or merged
• A contract or service (such as cleaning, catering, IT or maintenance) is outsourced
• A service contract is re-tendered and awarded to a new provider
• A previously outsourced service is brought back in-house

When TUPE applies, employees assigned to the transferring business or service automatically transfer to the new employer on their existing terms and conditions. Their continuity of employment is preserved, and their rights move with them.

When Does TUPE Apply?

TUPE applies where there is a “relevant transfer”, which typically falls into one of two categories:

1. Business Transfers – where a business (or part of a business) moves to a new owner and continues to operate in a similar form.
2. Service Provision Changes – where a service is outsourced, re-tendered to a new contractor, or brought back in-house.

Determining whether TUPE applies can be complex – particularly where responsibilities or staff roles are shared across teams. This is where tailored legal advice is essential.

What Happens to Employment Terms Under TUPE?

If TUPE applies:

• Employees must transfer to the new employer on their existing contractual terms
• Key rights such as salary, holiday entitlement and length of service are protected
• Employees cannot be dismissed because of the transfer, unless there is a genuine economic, technical or organisational (ETO) reason
• Changes to terms and conditions are only permitted in very limited circumstances

Attempting to make changes simply because ownership is changing will usually be void, and could result in claims for unfair dismissal or breach of contract.

TUPE and Dismissal

If an employee is dismissed because of the transfer or for a reason connected to the transfer (and not for a lawful ETO reason), the dismissal is likely to be automatically unfair. Compensation for automatically unfair dismissal can be significant.

How We Support Employers

TUPE can be legally and organisationally complex, particularly where restructures or reorganisations follow a transfer. We work with employers to:

• Assess whether TUPE applies to a situation
• Identify which employees should transfer
• Manage the employee information and consultation process
• Communicate clearly and lawfully with affected staff
• Plan integration into the new business structure
• Handle restructures and organisational changes without breaching TUPE protections

We also provide strategic support to reduce uncertainty, maintain morale, and prevent disputes.

How We Support Employees

If you are being transferred under TUPE and are unsure of your rights, we can:

• Explain how TUPE applies to your role
• Review any proposed changes to your terms
• Advise if dismissal or changes may be unfair or unlawful
• Support you through internal processes and discussions with your employer

We offer a free initial consultation to help you understand your position.

Get in Touch

TUPE situations can feel complicated — but the earlier you understand your rights and obligations, the smoother the outcome.

Whether you are an employer managing a transfer or an employee affected by one, we are here to help.

Contact us at enquiries@thrivelaw.co.uk to speak with a TUPE specialist.

We will support you to navigate the process clearly, confidently and lawfully.