A transfer of undertakings occurs in one of two situations - either a business transfer or a service provision change. When a business moves to a new owner in one of these 'relevant transfers', the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) protects the entitlement of UK employees to the same terms and conditions, with continuity of employment, as they had before the transfer.
This factsheet provides introductory guidance on the law governing the transfer of an undertaking. It lists the types of circumstances in which TUPE has been found to apply (such as mergers) as well as those circumstances in which it does not apply (such as transfers by share take-over), and also provides a checklist to help determine whether or not it is applicable in a particular situation. Finally, the factsheet offers introductory guidance on managing a TUPE situation, particularly when it comes to dismissals, consultation and notification, pensions, and required written information.
