Business Transfers and TUPE
It’s important to be aware that there are employment law implications when buying or selling a business or taking over or losing a contract.
This is because the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) apply when there is a transfer of a business or a Service Provision Change (SPC). A SPC is essentially means outsourcing, in-sourcing or the transfer of a contract for services from one contractor to another.
When TUPE applies, the employees who are affected by the transfer are entitled to transfer to the new owner or contractor on exactly the same terms and conditions, with their continuity of employment intact.
TUPE also places obligations on the outgoing and incoming employer to provide certain information and undertake consultation with affected employees.
Where employees are dismissed because of a transfer, the dismissal will be automatically unfair and the employee will be entitled to compensation flowing from the dismissal. In addition, a failure to properly inform and consult can lead to claims by employees for compensation and an award of up to 13 weeks pay per employee.
TUPE applies to ALL employers (though there is a more streamlined information and consultation process for very small employers) and given its complexity we would always advise that you seek advice on its application and the obligations that it places on your business.
Banner Jones’ Employment Law specialists have many year’s experience advising and supporting employers in relation to employment issues relating to business transfers. We can also represent you in any claims by employees in relation to rights arising under TUPE.
We can offer advice and assistance throughout the TUPE process, including being able to offer you a full HR service with a fully qualified HR specialist there to support you in your business during the entire process.
Banner Jones are also able to offer you a fixed cost Tool Kit to provide you with all of the information, guidance and precedent letters that you need to reduce the risk of an unfair dismissal claim in the employment tribunal and to ensure that you comply with your obligations to inform and consult.