Editor's message: TUPE protects employees when the organisation where they are employed changes hands - and is a notoriously complex area of employment law.
At the heart of the legislation is the concept that the entire employment contract, and the rights and obligations under it, transfer from the old employer (the transferor) to the new employer (the transferee). This applies both when all or part of a business or undertaking is transferred as a going concern to another employer, and where a service such as IT support, cleaning or catering is outsourced, brought back in-house or transferred to a new contractor. In effect, it means that the employee's contract of employment is treated as if it was always made with the new employer.
Under the TUPE legislation, both the transferor and the transferee are required to follow defined procedures during the transfer, including informing and, where appropriate, consulting with affected employees about the transfer. The legislation also provides protection from dismissal, as well as making purported contract variations void (unless specific conditions are met) - which impacts on transferees' ability to harmonise the terms and conditions of incoming staff in line with those of existing employees.
Zeba Sayed, employment law editor
When a business or service is transferred outside the UK, affected employees often take redundancy. But what happens if an employee asks to be transferred to the outsourced offices? Dr John McMullen, a partner at Wrigleys Solicitors LLP, looks at the application of TUPE in these circumstances.
In this week's podcast, we discuss the thorny issue of harmonising terms and conditions after a TUPE transfer as well as the practicalities of handling dismissals in a TUPE situation.
In this week's podcast, we discuss the practicalities of informing and consulting with transferring employees on a TUPE transfer.
Updated to include information on Federatie Nederlandse Vakereniging and others v Smallsteps BV, in which the ECJ held that a "pre-pack" administration may not prevent employees from having TUPE rights.
Darren Newman explains the "go to" definition of an "economic, technical or organisational reason entailing changes in the workforce" for the purpose of a TUPE transfer, established in Delabole Slate Ltd v Berriman.
The European Court of Justice has held that "pre-pack" administration, which is designed to facilitate the sale of a business as a going concern in the event of insolvency, may not prevent employees from having TUPE rights.
Chris Cook is partner and Keely Rushmore senior associate at SA Law. They round up the latest rulings.
A recent legal ruling shows that sound judgment is needed during TUPE service provision changes to decide whether or not the activities carried out afterwards are "fundamentally the same" as before. Dr John McMullen advises on the ruling.
In Alno (UK) Ltd v Turner, the Employment Appeal Tribunal decided TUPE applied due to the "multi-factorial" test established in an earlier case. Dr John McMullen explains.
Chris Cook is partner and head of employment and Keely Rushmore is senior associate at SA Law. They round up the latest rulings.
HR and legal information and guidance relating to TUPE.