The Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246) known colloquially as TUPE, are the United Kingdom's implementation of the European Union Business Transfers Directive. It is an important part of UK labour law, protecting employees whose business is being transferred to another business. The 2006 regulations replace the old 1981 regulations (SI 1981/1794) which implemented the original Directive.
The regulations' main aims are to ensure that,
- just because of the transfer, employees are not dismissed before or after (unless there is an 'economic, technical or organisational' reason, r 7(1)(b))
- employees' most important terms and conditions of contracts are not worsened before or after the transfer (unless there is an 'economic, technical or organisational' reason, r 4(4)(b))
- affected employees are informed and consulted through representatives
This does not apply to transfers which go merely through the sale of a company's shares. When that happens, because the company is still the same company, all contractual obligations stay the same. The Directive and Regulations apply to other forms of transfer, through sale of physical assets and leases. The regulations also apply in some cases for work transferred to contractors. This protected contract terms for workers include hours of work, pay, length of service and so on, but pension entitlement is excluded.
Read more about Transfer Of Undertakings (Protection Of Employment) Regulations 2006: Contents, Example, Evaluation, Anomalies, Reform, Cases
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