TUPE Takeaways What Is An Economic Entity

For there to be a relevant transfer under TUPE, there must be a transfer of an "economic entity" which retains its identity. Most employers won't spend long pondering whether a transfer involves an "economic entity". For example, a sale of a retail store as a going concern is most likely to be considered an "economic entity"; its ultimate purpose is to purchase and then sell goods for a profit.

However, a recent Employment Appeal Tribunal decision has highlighted that the existence of an economic entity is not always straightforward.