UNDERSTANDING TUPE: WHAT YOU NEED TO KNOW

ASESA Solutions Ltd - UNDERSTANDING TUPE

When businesses change hands or services are outsourced, there’s more at stake than contracts — people are involved. That’s where TUPE comes in.

What is TUPE?

TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations. It protects employees when the business they work for, or part of it, transfers to a new employer.

When does it apply?

TUPE applies in two main situations:

• When a business (or part of it) is sold or taken over

• When a service changes provider (outsourcing, insourcing, or changing contractors)

  
  

What does it mean for employers?

• Employees automatically move to the new employer with their existing terms and conditions

• Their continuity of service is preserved

• Employers must inform and consult affected staff in advance

• Dismissals connected to the transfer (without valid business reasons) may be automatically unfair

  
  

Can TUPE be avoided?

No — if the situation meets the legal criteria, TUPE applies automatically. It's not a choice.

What about changes post-transfer?

Changes to employee contracts are only allowed if there is a valid economic, technical, or organisational (ETO) reason, and employees agree.

That means a reason related to:

• Economic – e.g. the business is losing money and needs to cut costs

• Technical – e.g. new technology changes how the job is done

• Organisational – e.g. a restructure or merger affecting job roles or location

Why it matters?

Getting TUPE wrong can lead to costly legal claims. Getting it right protects both the business and its people during times of change.

Tip: If you're planning a restructure, outsourcing, or taking over a contract, always check if TUPE applies — and get advice early.

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