Does the duty to inform and consult employees prior to a TUPE transfer apply to small businesses?
Yes, the duty to inform and consult prior to a TUPE transfer applies to all employers, regardless of size. However, micro-businesses (those with fewer than 10 employees) are exempt from the requirement to hold elections for employee representatives where there is no recognised union or existing appropriate representatives. They can inform and consult directly with the affected employees.
For transfers that take place on or after 1 July 2024, the exemption from the requirement to hold elections also applies:
- to organisations with fewer than 50 employees (ie small businesses); and
- for organisations of any size, if fewer than 10 employees are to transfer.
The employer can inform and consult directly with affected employees in these circumstances, where there is no recognised union or existing appropriate representatives.
