What Does TUPE Mean?

TUPE is the abbreviation used for the Transfer of Undertakings (Protection of Employment) Regulations. This becomes relevant for any of the redundancy decisions when an entire business or a portion of the company is transferred to another owner.

Both the old and the new owner need to consult and inform staff that will be affected indirectly or directly by the transfer of ownership.

The rights of the employees are protected when a company changes hands. In addition, Terms and Conditions are also maintained when part of or the entire business transfers to another owner.

The TUPE regulations passed first in the year 1981 and were amended in the year 2006 and the year 2014, with the aim of safeguarding and protecting the rights of employees when the business that employed them decides to change hands.

Under the initial common-law position, a relationship between an employee and employer is personal as well as defined or set out in the employment contract.

If this business changes ownership or hands, the initial common-law position meant the termination of an original employee-employer relationship. This meant that the contractual rights of an employee ended when the ownership of the business changed.

In contrast, TUPE regulations are in place to protect the employee’s contractual employment rights, when a business is transferred or sold.

This now means employees cannot be let go or dismissed or their contracts varied or terminated, just because the business is sold or transferred. If you have questions regarding TUPE, then you can reach out to one of our qualified solicitors for advice.

TUPE regulations provide a framework which is associated with the protection of employee rights.

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