TUPE Law Solicitors for Employers

The Transfer of Undertakings (Protection of Employment) Regulations 2006, commonly known as TUPE, are designed to safeguard employee rights when a business or service provision changes hands. For employers, TUPE can be complex, with serious legal and financial implications if not handled correctly.

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At Franklins Solicitors, we provide expert legal support to employers on both sides of a transfer, helping you through the TUPE process with confidence, reducing the risk of disputes, and ensuring a smooth transition for your workforce.

What is TUPE?

TUPE protects employees when:

  1. A business (or part of a business) is sold or transferred to a new owner (a “business transfer”), or
  2. A service contract is outsourced, insourced, or retendered (a “service provision change”).

In both cases, TUPE ensures that employees who are assigned to the transferring business or service:

  • Automatically transfer to the new employer (the “transferee”)
  • Retain their existing terms and conditions of employment
  • Are protected from dismissals connected to the transfer

TUPE applies regardless of the size of the business or the number of employees involved, and failure to comply can lead to claims for unfair dismissal, breach of contract, or protective awards.

Key TUPE Obligations for Employers

TUPE creates a number of legal duties for both the outgoing employer (the transferor) and the incoming employer (the transferee). These include:

1. Automatic Transfer of Employees

The transferee inherits:

  • All employees assigned to the transferring business or contract
  • All their existing contractual rights, benefits, and obligations
  • Liabilities for claims relating to the employee’s pre-transfer employment

The employees must transfer on their existing terms unless a valid economic, technical, or organisational reason exists for changing them.

2. Protection Against Dismissal

Employees are protected from being dismissed where the sole or principal reason is the TUPE transfer itself. Such dismissals are considered automatically unfair, unless:

  • There is a genuine ETO (Economic, Technical or Organisational) reason; and
  • A fair procedure is followed

Missteps can result in employment tribunal claims and significant compensation liabilities.

3. Duty to Inform and Consult

Both the transferor and transferee must inform and, where applicable, consult with affected employees or their representatives (e.g. recognised trade unions or elected employee reps) about:

  • The fact of the transfer
  • The date or proposed date of the transfer
  • The reasons for the transfer
  • Any implications for employees
  • Any “measures” the employer intends to take

Failure to properly consult can result in a protective award of up to 13 weeks’ gross pay per affected employee.

4. Employee Liability Information (ELI)

The transferor must provide written details of all transferring employees to the transferee at least 28 days before the transfer. This includes:

  • Employee identity and age
  • Employment terms
  • Disciplinary or grievance records
  • Claims and tribunal history
  • Collective agreements

Failure to provide ELI, or to do so accurately and on time, can result in financial penalties of up to £500 per employee.

When Does TUPE Apply? Common Scenarios

TUPE can apply in a variety of business situations, including:

  • Business sales or acquisitions
  • Mergers and reorganisations
  • Outsourcing of functions
  • Re-tendering of service contracts
  • Bringing services back in-house

Each situation must be assessed on its own facts. We help you determine whether TUPE applies, and if so, how to proceed in a way that limits legal and commercial risk.

TUPE Due Diligence and Strategic Advice

If you are buying a business or taking over a contract, TUPE can expose you to significant hidden liabilities, including legacy claims, pay disputes, or disciplinary issues. Our team advises on:

  • Pre-transfer due diligence to assess workforce liabilities
  • Indemnity and warranty clauses in commercial contracts
  • Managing cultural integration and contract harmonisation
  • Post-transfer workforce planning
  • Responding to claims or challenges by employees

We also work with HR teams to ensure TUPE processes are clear, compliant, and well communicated.

Why Employers Choose Franklins Solicitors

  • TUPE experts for both transferors and transferees
  • Trusted by businesses across sectors and industries
  • Clear, jargon-free advice from start to finish
  • Full support for consultation, contracts, and compliance
  • Robust defence against TUPE-related claims

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Frequently Asked Questions about Employment Law

What is TUPE?

TUPE refers to the Transfer of Undertakings (Protection of Employment) Regulations 2006. It’s a UK law designed to protect employees’ rights when the business or contract they work for is transferred to a new employer.

When does TUPE apply?

TUPE applies when a business or part of it is sold, activities are outsourced, brought in-house, transferred or a contract for services is moved from one provider to another.

What happens to employees when a business is transferred under TUPE?

The employees who are transferring transfer to the new employer along with their employment contracts and length of service. Their terms and conditions of employment, and continuity of service, are preserved.

What are an employer's responsibilities under TUPE?

Employers must inform and consult with recognised trade unions or elected employee representatives about the transfer. They also have to provide specific information about the transfer including when it’s happening, why, and legal, economic and social implications.

Can an employer change an employment contract after a TUPE transfer?

Any changes to the employees’ terms and conditions of employment are invalid if the sole or principal reason for the change is the transfer itself, unless the employer can demonstrate economic, technical or organisational reasons.

What happens if an employee refuses to transfer (objects to the transfer)?

If an employee objects to being transferred, they effectively terminate their contract of employment and it would be treated as a resignation, not a dismissal.

Contact the Franklins Employment Law team

If you have any questions about employment law, please don’t hesitate to contact our team of experts who are on hand and ready to help you.