The Transfer of Undertakings (Protection of Employment) Regulations 2006 sets out the key legal principal that where there is a transfer of an economic entity, or a company reassigns a service contract, the employees assigned will automatically transfer.
TUPE is an operation of law, meaning that if the rights circumstances arise, employers and employees cannot “opt-out”. There are a number of obligations that the two employers owe eachother and their employees. There are certain steps which must be taken in advance of the transfer and actions which must be avoided. There are hefty penalties involved for failure to comply with TUPE.
We can guide you through your TUPE obligations. If you are acquiring an entity, we can assist with the due diligence process, and provide you with the guidance and template letters you will need