When a business transfer or service provision change occurs, the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) comes into play.
What is TUPE?
TUPE stands for the Transfer of Undertakings (Protection of Employment). It’s designed to protect employees if the business they work for changes hands. This means employees and any liabilities associated with them move from the old employer to the new employer by operation of law.
Customer’s Key Responsibilities
Early Identification: Determine whether TUPE applies to your situation. This involves understanding if there’s a transfer of responsibilities to a business or organisation.
Due Diligence: Gather all relevant employee information, including terms and conditions of employment and any ongoing or potential employment liabilities.
Inform and Consult: You must inform and consult with the appropriate representatives of any affected employees. This is a legal requirement and must be done in good time before the transfer.
Legal Compliance: Ensure that all actions taken are in compliance with TUPE regulations. This includes honoring the terms and conditions of the employees’ contracts post-transfer.
Collaboration: Work closely with the outgoing and incoming service providers to ensure a seamless transition of staff and responsibilities.
Failure to comply with TUPE can lead to significant legal and financial consequences. It’s not just about following the letter of the law but also about respecting the rights and livelihoods of the employees involved.