Our employment lawyers are experienced in advising on all aspects of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”), whether it applies as part of a business sale, an outsourcing arrangement or in insolvency situations.
A key aspect of TUPE is ensuring that you comply with the information and consultation requirements. Failure to comply can lead to tribunal claims for 13 weeks’ uncapped pay for each affected employee. Under the rules, except in the case of micro employers, employers are required to elect employee representatives to whom information regarding the transfer must be provided. Employers are also required to consult with the employee representatives where measures are envisaged related to the transfer which will affect employees.
Awards for failure to inform and consult under TUPE are “joint and several” between the Transferor and the Transferee so, whether you are the seller or buyer in a transaction or the outgoing or incoming contactor in an outsourcing situation, you are potentially exposed to compensation claims if there is non-compliance by either party.
We will work with you to ensure you can navigate your way through the regulations and minimise the risk of becoming exposed to expensive claims.
We can also advise on the employee liability information requirements laid down in TUPE to ensure you are compliant.
Further, we can advise on post TUPE issues and any changes you may or may not be able to make regarding the terms and conditions of employment of the staff that you have acquired. Generally speaking, under TUPE employees’ terms and conditions of employment are preserved and they enjoy special protection against dismissal. However, there may be scope for you to make structural changes if you can demonstrate there is an “economic, technical or organisational reason entailing changes in the workforce”. We have extensive experience in these issues and can safely guide you through the potential minefield of TUPE compliance.