If you are looking to merge your business or acquire another business, TUPE regulations can have a significant impact. You may also find that TUPE applies if you outsource services, for example if you supply cleaning staff to other organisations.
TUPE stands for ‘Transfer of Undertakings (Protection of Employment) and is designed to protect employees if their employer changes. Broadly, TUPE protects their terms and conditions of employment, which means that their new employer cannot treat them any less favourably.
If you are considering acquiring another business, however small, be sure to check whether TUPE applies. If in doubt, we can advise. We can also help you to meet your responsibilities to comply with TUPE regulations and ensure that any other legal requirements are met.
TUPE affects whether the business deal can go ahead
Part of the TUPE process requires strict due diligence. It’s vital that this is completed properly. In some cases, it can determine whether or not the deal goes ahead.
Imagine not doing your due diligence, only to find out six months after an acquisition that you are obliged to pay thousands in visa fees for a particular employee. Or not knowing until it’s too late that your incoming employees have guaranteed bonuses that are going to cost you a small fortune.
You need to know what the people who are transferring do – don’t assume based on their job titles. You need to know what costs are associated with the employees that transfer in, and any liabilities.
TUPE also has tight restrictions in relation to redundancy, so don’t go thinking you can transfer folk in and then make them redundant – it doesn’t work like that.
TUPE affects everyone
You should also consider the impact of TUPE on your current staff, as well as those that transfer in. Or out, if you’re on the other side of the transfer.
It can be hard for your current employees to get used to the idea of new people coming to work with them. They can sometimes feel threatened that others are coming in that ‘might be better than them’. Likewise, those transferring in can be nervous. They don’t know how things work. Where the toilets are. How the printer works, etc.
It’s important to plan well for those first few days and weeks after the transfer completes. Wellbeing check-ins, team-building activities, and anything else that builds a culture of togetherness will set you up for a successful transfer.
We are here to guide you through each and every stage of the TUPE process, so get in touch if you need any advice.