In the current financial landscape, TUPE (The Transfer of Undertakings (Protection of Employment) Regulations 2006) is a hugely relevant area of employment law
TUPE is designed to protect the existing contractual and statutory rights of employees when their employer is transferred into new ownership. Complying with TUPE is extremely difficult for employers and can have huge consequences for both the business making the transfer (Old Co) and the business taking on the transfer (New Co). For instance, under the TUPE regulations the employees’ contractual terms and conditions transfer to the New Co. It is then very complicated and technical area of employment law that must be complied with if New Co wishes to change such terms and conditions and if handled incorrectly the New Co can put themselves at risk of claims for constructive dismissal.
It is important for both Old Co and New Co businesses to obtain specialist employment advice as there are many different types of business moves that are likely to trigger the TUPE regulations in addition to standard sales e.g. outsourcing business functions.
At SDM Legal, our employment solicitors pride themselves in taking the time to understand your business structure and proposed changes and can work with you to ensure your restructure is TUPE compliant from the outset.