The TUPE Regulations [Video]

The TUPE regulations operate so as to preserve the employment of an organised grouping of employees whose employer's business is transferred to a new owner. The regulations apply in a way, which means that the employment of the employees is automatically transferred to a new owner. Where there is a relevant business transfer, the grouping of employees will transfer along with their terms and conditions.

Video transcript:

These terms and conditions will include their salary, their bonus, their continuity of service and even some pension rights. Before the transfer, the responsibility's in place between the two companies, and also responsibility to the employees. An existing employer is required to provide ELI or Employee Liability Information to an incoming employer. The information which needs to be provided is the name of the employee, their age, their length of service, their pay, their bonus, and any other contractual entitlements.

That information needs to be provided not less than 14 days before the date of the proposed transfer. There's also a requirement for both companies to inform, and if appropriate, to consult with employees. Employees are required to appoint employee representatives and it is those individuals who the companies will inform and consult with.

The incoming employer is also required to advise of any measures that they anticipate will be made. These could include a change in premises or even proposed redundancies. There's also protection within the regulations for employees in that if there's a failure to inform or consult, there's entitlement to receive 13-weeks pay, per employee, for a failure and the liability for that will be joint and several between the two companies.

An employee can opt out of a proposed transfer. However, if they do that, the effect on their employment is that they are treated as having resigned. Additionally, if there is a failure to transfer the employment of an employee who is in scope [sounds like 00:02:04] there is likely to be a finding of automatic unfair dismissal and the employee has the ability to go to a tribunal and to seek compensation for that.