There is an increasing trend for businesses to use outsourcing as a means of delivering a better service for less money. Since April 2006 the law has given employees more rights and protection when this happens. This law is the Transfer of Undertakings (Protection of Employment) Regulations 2006 (known as TUPE).
Buying and selling assets in a business can also trigger TUPE.
Employers and potential employers need to take employment law advice before agreeing the commercial terms of any deal.
A failure to follow TUPE can result in substantial awards against the organisations involved. They include having to pay 13 weeks pay for each affected employee, for failing to inform or consult under Regulation 13 of TUPE.
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