Takeovers, mergers and TUPE
Are you thinking of buying or selling a business? Are you aware that TUPE protects employees in this situation?
TUPE protects an employee's existing employment contract when the business or part of the business they work for changes ownership. TUPE protects two types of transfers: business transfers; and service provision changes. The TUPE regulations have a huge impact for the employer who is making the transfer and the employer who is taking on the transfer:
Employer making the transfer
The employer making the transfer must provide and disclose accurate and up to date information about the transferring employees also known as the ‘Employee Liability Information’ (“ELI”) not less than 28 days before the transfer. Our team are available to advise you what information is classified as ELI.
Employer who is taking on the transfer
The employer who is taking on the transfer must at the outset create a TUPE process plan. They must then ensure they analyse the ELI and ensure after the transfer that all employees are managed, settled and clear about their duties. Our team are available to help you analyse the ELI and advise you of any further information you may need to request.
Failure to follow the correct procedure can have catastrophic consequences for both the buyer and the seller. An employee could bring claims of unfair dismissal or redundancy claims if this process is not extinguished correctly.
We understand the selling or buying a business can be stressful and we can be on hand right from the outset to ensure the correct procedure is being followed. The team at Moore Blatch will work with your business throughout the entire transfer to ensure that all parties are kept up to date at all times to minimise the risk of any claims. This area of law is complex and our experienced lawyers are on hand to simplify the process in order that you fully understand the business’ position.
For more information please contact Katherine Maxwell or Naomi Greenwood.