My company is being taken over, what are my TUPE rights?
Quick Answer
TUPE protects your employment when a business or service transfers to a new employer. Your contract transfers automatically on the same terms. You cannot be dismissed solely because of the transfer, and changes to your terms are restricted.
The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) protect employees when a business or part of a business transfers to a new owner, or when a service provision changes (e.g., outsourcing, re-tendering, or bringing a service back in-house).
Your key TUPE rights are: (1) your employment transfers automatically to the new employer on the same terms and conditions — the new employer steps into the shoes of the old one; (2) your continuity of employment is preserved; (3) dismissal solely or principally because of the transfer is automatically unfair, with no qualifying period required; (4) the new employer cannot unilaterally change your terms to your detriment where the sole or principal reason is the transfer.
There are limited exceptions: changes to terms may be permitted if there is an "economic, technical, or organisational" (ETO) reason entailing changes in the workforce. However, the threshold is high.
Before a TUPE transfer, both the old and new employer must inform affected employees (and their representatives) about the transfer, the reasons for it, the legal, economic, and social implications, and any measures proposed. Failure to comply with information and consultation obligations can result in a penalty of up to 13 weeks' pay per employee.
If you are dismissed in connection with a TUPE transfer, you should claim unfair dismissal in the Employment Tribunal (three months minus one day from dismissal). If your terms are unilaterally worsened, you can raise a grievance and potentially claim constructive dismissal.
Relevant legislation
- • Transfer of Undertakings (Protection of Employment) Regulations 2006
- • Employment Rights Act 1996, s.94
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