OK, I admit it. TUPE isn't everyone's cup of tea. It is
often perceived as unfriendly for business, an unnecessary
distraction when trying to negotiate a business sale or outsourcing
contract. For those unfamiliar with it, TUPE can prompt a range of
reactions: curiosity, bewilderment, indifference.
There are certainly areas of complexity, but I think the key for
any business is to focus not on the law, but on its preferred
commercial outcome. In an ideal world, what does it want to happen
to the employees and how will it deal with any associated
costs?
The basics
If TUPE applies, employees transfer automatically on their
existing terms and conditions to the new employer, who steps into
the shoes of the old employer and becomes responsible for any
existing liabilities. The employees are protected from dismissal
and any changes to terms and conditions because of the TUPE
transfer (save in certain limited circumstances). There is an
obligation to inform (and
