What Happens to Employee Contracts During a TUPE Transfer

A TUPE transfer, the Transfer of Undertakings (Protection of Employment) Regulations 2006, is in place to safeguard employees when a business or service is sold on. Essentially it makes sure that employment contracts, benefits and any accrued rights are transfered automatically over to the new boss.

At Darwin Gray Solicitors, we are a well-established commercial and employment law firm that is listed on Companies House and regulated by the Solicitors Regulation Authority. Our team regularly gives advice to employers and employees on all the ins and outs of TUPE compliance, restructuring and workforce changes.

How Employee Contracts are Affected Under TUPE

When a business transfer falls under TUPE, all the staff working on the business get automatically transferred over to the new boss (the “transferee”). This means that their existing employment contracts just carry on as normal, this includes things like:

• Pay and benefits
• Holiday and working hours
• Length of service
• Collective agreements and company policies

The automatic transfer rule is in place to ensure that employment is kept running smoothly and that staff don't lose out because of a change of ownership.

Our employment team at Darwin Gray has a great reputation for helping businesses navigate the transition period and doing it all by the book.

When Can Contract Terms Be Altered After a TUPE Transfer?

Normally the new boss can't just go and alter the terms and conditions of an employee's contract just because of the transfer. Any changes would have to be justified on the grounds of an economic, technical or organisational (ETO) reason. This could be something like a genuine business restructure or a genuine need for efficiency.

If changes are made without a good reason, the employer could face claims for unfair dismissal or constructive dismissal. Our solicitors at Darwin Gray are often brought in by our clients to guide them through these types of sensitive adjustments and ensure that everything is above board.

Redundancy and Reorganisation Following a TUPE Transfer

If redundancies are needed after a TUPE transfer, the employer still has to follow proper procedures. There's no getting away from this but TUPE does mean that the employer can't just make redundancies for no good reason.

We help our clients on redundancy consultations and ETO-based restructures and do our best to balance the needs of the business with our clients' legal duties to reduce the risk of tribunal claims.

What Protections Do Employees Have Under TUPE

Employers who are affected by a TUPE transfer have a lot of protections in place, these include:

• Keeping continuous employment
• Being protected from getting the sack because of the transfer
• The right to challenge any changes or redundancies that are made that are unfair or against the law

Our firm has a great reputation for delivering practical, no-nonsense employment solutions that put people at the heart of things.

Frequently Asked Questions: What Happens to Employee Contracts Under TUPE?

Q: Do employee contracts automatically transfer under TUPE?
A: Yes, and all terms, conditions and continuous service also get transferred over.

Q: Can the new employer change the contract?
A: Only under extreme circumstances and usually after proper consultation has taken place.

Q: What happens to pensions in a TUPE transfer?
A: Most occupational pension rights do not get transferred over but other entitlements may.

Q: What if the TUPE rules are not followed?
A: Employees can bring a claim for unfair dismissal, breach of contract or failure to consult properly.

Why Businesses Trust Darwin Gray

With years of experience working with public and private sector organisations in Wales and the UK, Darwin Gray LLP combines deep employment law expertise with a deep understanding of the real world of business.

We are proud to be recognised in The Legal 500 and Chambers UK for our strong employment and corporate practices and are always at the side of our clients to help them navigate TUPE transfers, mergers and restructuring projects while keeping their workforce and compliance intact.

If you're looking at transferring a business, outsourcing services or are involved in a TUPE-related dispute, our employment law team at Darwin Gray provides straight-forward, pragmatic legal advice to keep you secure and your staff protected.