Managing TUPE
Support for your business at times of change
If you are a business owner looking to grow through acquisition or looking to sell your business, or you are taking on new business from competitors then you should be aware of the employment law regulations TUPE (Transfer of Undertakings (Protection of Employment) Regulations 2006). ProAction HR can support your business at times of change.
The purpose of TUPE is to protect employees' rights when the business in which they work changes hands. It acts to switch staff and liabilities from the transferor (the employees' employer before the transfer) to the transferee (the entity that acquires the business and employment of the staff, or takes over providing services).
When does a TUPE transfer happen?
If an Organisation, or part of it, is transferred from one employer to another, or if a service is transferred to a new provider.
The size of the organisation does not alter the obligation to manage TUPE – all staff are protected if either of the actions above have occurred.
In the event of TUPE there are obligations on both the transferor (employer losing staff) and transferee (employer receiving staff). Both parties will identify who is affected by the transfer and then they should;
Inform, and in some cases where changes may be needed, consult employees who are affected by the transfer. *Not necessarily just those transferring but those affected
Information will be shared by the 2 Organisations regarding the staff transferring
Then the employees who are transferring, transfer to the new employer along with their existing employment contracts and length of service.
It’s important to note:
Staff have the ability to decline the transfer but effectively resign.
Any dismissal directly connected to the transfer will lead automatically to a finding of unfair dismissal.
Other elements to consider
In acquiring a business you will also acquire the risks from previous employment decisions. As such it is critical to ensure a reasonable level of due diligence is taken regarding employment records and past history of actions including;
Long term sick
Dismissals
Resignations
Tribunal claims
Future Pay Commitments
Agreed Collective Consultations etc
Book a discovery call to find out how ProAction HR can support you in managing Tupe
ProAction HR can support you through TUPE
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Prepare to Acquire
1.Review the data provided by the seller to determine the degree of risks you face when acquired.
2. Seek to review with you the capability of the business and ensure you have commitment from the incoming staff.
3. Ensure a suitable individual or collective inform and consult exercise is conducted including working with the seller to ensure they provide information and consultation to their staff as appropriate.
4. If you plan to acquire several businesses we can ensures your terms and benefits are such that a transfer and consultation to move to your terms becomes effective.
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Prepare to Sell
If you are seeking to sell your business or a specific part of that business then we would:
1.Prepare your employment records and facts ahead of any sale to show the buyer confidence.
2. Ensure your management team are ready to deliver on the due diligence including direct discussions with the future owner – often a sale depends on the quality of the staff especially management.
3. Ensure you meet the requirements of TUPE in consulting with your staff and providing information to the buyer.
Throughout this process it’s a scary time for staff and for you as an owner directly. It is critical that whether buying or selling you retain the hearts and minds of the staff and avoid unnecessary loss in motivation and productivity. As Peter Drucker stated “Culture eats Strategy for Breakfast”.
The benefits of getting a TUPE right
Book a discovery call to find out how ProAction HR can support you in managing TUPE
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