EMPLOYMENT LAW FOR EMPLOYERS

Business Transfers (TUPE)

Atkins Dellow > HR and Employment > Employers > Business Transfers (TUPE)

Expert Employment Law Solicitors

The Transfers of Undertaking (Protection of Employment) Regulations, commonly referred to as TUPE, protect employees when the business they work for or the section of a business they work in changes hands. If you’re selling, buying or transferring ownership of a business or part of a business, it’s important to know about your duties to the employees.

Our expert Employment Law Solicitors can give you the valuable guidance so you can move forward with your transaction in the right way and without legal problems.

Employee rights are one of the most important things to consider when purchasing another business or taking over part of a business such as a service contract. If you don’t you could land yourself with liabilities you don’t expect. The correct procedures around the transfer process must be followed by the current employer and the new employer.

Under TUPE, employee’s jobs are protected and the new owner of the business would have to look very carefully at whether any changes could be made to any employee’s contract. Our Employment Law experts can help you accomplish a seamless transition to avoid otherwise unnecessary liabilities.

What Business Transfer (TUPE) Employment Law Services do we provide?

Our team of experts can help you navigate detailed procedures and potential pitfalls that you must consider when buying or taking over a business including:

  • Advising on the legal and procedural requirements,
  • Advising on and assisting you with the steps and documentation required to ensure legal compliance and best practice,
  • Drafting letters and scripts to ensure good communication with employees and employee representatives,
  • Carrying out due diligence on employee related documentation
  • Ensuring compliance with the prescribed employee liability information (ELI) requirements,
  • Dealing with any employees who do not wish to transfer,
  • Helping complete the transfer of employees from the ‘old’ employer to the ‘new’ employer.

Business Transfers (TUPE) Employment Law FAQs

Can we make redundancies after buying a business?

Yes, you can make redundancies after and buying a business if you have an economic, technical or organisation (“ETO”) reason entailing changes in the workforce. There isn’t any precise definition of what an ETO reason is, but it’s likely to include a reason relating to profitability or market performance, a reason relating to the nature of the equipment or production processes, or a reason relating to the management or organisational structure of the new business. Any redundancies that you make must be made after the transfer has taken place, but you can carry out the redundancy consultation before the transfer if you wish.

Which employees do we have to keep after buying a business?

You have to keep all the employees who transfer over with the business, unless you have an economic, technical or organisation (“ETO”) reason entailing changes in the workforce. In that case you can consult with the affected employees, and make them redundant if there isn’t way of avoiding the redundancy.

Do employment contracts get affected by business transfers?

Any employee who transfers across with the business, comes over on their terms and conditions. So, in general terms, the only term that should change is the name of the employer. There are exceptions to this as most pension based rights don’t transfer across with the employee.

Is there anything we can do if key employees decide to leave the company when the business is sold?

No, you can’t stop them leaving if they want to. Each employee has a right to refuse to transfer to the new employer, if that’s what they wish to do. If they don’t transfer to the new employer, then their employment ends on the date of the transfer. If the new business desperately wants to keep particular key employees, it may need to incentivise those employees to stay with the business.

Employment Law Specialists at Atkins Dellow

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© 2023 ATKINS DELLOW LLP

Atkins Dellow LLP is a limited liability partnership. Registered in England and Wales under number OC430143. Authorised and regulated by the Solicitors Regulation Authority under number 667838.

BURY ST EDMUNDS
Head Office &
Admin Centre

Low Green Barn
Nowton
Bury St Edmunds
Suffolk
IP29 5ND

01284 767766

BURY ST EDMUNDS
Town Centre
7 Whiting Street
Bury St Edmunds
Suffolk
IP33 1NX

01284 767766

SUDBURY
2 Friars Street
Sudbury
Suffolk
CO10 2AA

01787 323400

LONDON
12B Queensbury Mews West
London
SW7 2DU

020 4542 4100

© 2023 ATKINS DELLOW LLP

Atkins Dellow LLP is a limited liability partnership. Registered in England and Wales under number OC430143. Authorised and regulated by the Solicitors Regulation Authority under number 667838.