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Transfer of Undertakings
If your employer sells or transfers the business to another company there will be many issues to consider. What happens to you if the new business wants to change the basis on which you have been employed?
The Transfer of Undertakings (Protection of Employment) Regulations (TUPE) safeguards your rights when a business is transferred or sold.
The legislation itself is complex but in simple terms:
- your employment transfers to the new business
- the new business inherits all rights, liabilities and obligations relating to your employment contract
- generally any change to those terms and conditions will be void
- any dismissal of employees for a reason connected with the transfer will be automatically unfair.
- obligations are imposed on the buyer and seller to consult their own employees who may be affected by the transfer.
It may not always be obvious that TUPE applies. For example the outsourcing of work that was previously done in-house can be caught by TUPE.
At Hart Brown we have advised many clients who have been affected by TUPE including attempts to wrongly change the terms of their employment.