TUPE

With difficult times facing businesses, many companies are being sold or work is being outsourced as a means of reducing costs.

Buying and selling assets in a company, as well as outsourcing or “insourcing”, can all fall under the Transfer of Undertakings (Protection of Employment) Regulations 2006, widely known as “TUPE”.

The premise of TUPE is quite simple: wherever there is a relevant transfer, all employment rights and liabilities will transfer to the new owner.  In practice, it tends to get a little more complicated and 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 TUPE.

We offer practical support before, during and after a TUPE transfer and can help you with the pre-transfer process, advising on how to inform and consult with employees, and help you after the transfer, advising on dealing with new employees and looking at when you can you can change terms and conditions of employment.

For more advice on the employment implications of buying or selling a business or outsourcing, contact any member of our team.

Don’t forget that if you are buying or selling a business, you’ll need help with the commercial transaction and may also need property advice.  Our experienced commercial and real estate teams can help you every step of the way.