Our expert legal advice will ensure you fully comply with your TUPE responsibilities if you are buying or selling a business At a glance
- If you are buying or selling a business, TUPE must be a major consideration. TUPE (Transfer of Undertakings (Protection of Employment) Regulations) protects an employee’s existing contract when the business they work for changes ownership.
- If you are selling, you must disclose Employer Liability Information (ELI) and if you are buying, you must create a TUPE process plan that integrates the ELI and ensures all employees are managed, settled and clear about their duties.
- Failing to meet these requirements can have very costly repercussions, so it is essential you have our expert legal advice and support throughout the process.
If you are thinking of buying or selling a business, you should be aware that TUPE protects employees in this situation.
TUPE stands for Transfer of Undertakings (Protection of Employment) Regulations. In essence, 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 significant 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 can 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 will help you analyse the ELI and advise you if you need to request any further information.
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 carried out correctly.
We understand that selling or buying a business can be time-consuming, complex and stressful. You will have many things to consider, but it is vital that the TUPE aspect of your purchase or sale is not overlooked.
We will be on hand right from the outset to ensure you are following the correct procedure. Our specialist employment team will work closely with your business throughout the entire transfer, to ensure all parties are constantly kept up to date to minimise the risk of any claims. This area of law is complicated and involved, so our experienced team will ensure their explanations are clear and helpful, so you fully understand the business’s position.
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