What is the main effect of the TUPE Regulations 2006 for employees?

When a TUPE transfer takes place, the transferee (new employer) inherits the contracts of employment of the persons employed by the transferor (old employer) immediately before the transfer took place. Therefore, the employees automatically become employees of the transferee, with their continuity of service unaffected.

The transferee also inherits the transferor's rights, powers, duties and liabilities (other than any criminal liabilities) in connection with those contracts. This does not include any part of a contract of employment or collective agreement that relates to old age, survivors' or invalidity benefits under an occupational pension scheme.