TUPE applies to the sale or transfer of a business or part of a business. Although in some respects a fiendishly complicated set of regulations, TUPE actually serves a very simply purpose, when a business or part of a business is bought or sold the employees of that business transfer and all of their rights and obligations transfer with them. This includes their salary, holiday, job title, duties and length of service.
In addition to transferring the employees with their full terms and conditions TUPE confirms that save in a few exceptional circumstances (for example a redundancy situation) the purchaser of the business cannot dismiss any of the employees. Any attempt to do so will be unfair and give rise to a potential claim.
Additionally TUPE imposes upon both the buyer and the seller various obligations in terms of consulting with the employees concerned and for the provision of information relating to the employees and their terms and conditions. A failure to comply with the duty to consult with employees can lead to swingeing fines being made in favour of the employees.
Nockolds' Employment Team works closely with our Business Law Team Team to ensure that you are not caught out by the effects of TUPE. If you have any queries relating to TUPE or fear that TUPE applies to your situation please do not hesitate to contact us.
For further information on TUPE and to find out how we can help you, please contact our Employment Law Team on 01279 755777 or get in touch with Gary Smith, Partner in our Employment Team.