The key risks of changing terms on a TUPE transfer – even
when they are beneficial to the employee.
The purpose of the Transfer of Undertakings (Protection of
Employment) Regulations 2006 (TUPE) and the European Directive
which it implements is to protect the terms of employment of
employees who transfer from one employer to another when a business
or part of a business transfers.
A key provision of TUPE is therefore that any changes to an
employee's contract will be void if the sole or principal
reason for the change is the TUPE transfer. This means there is a
risk that changes to terms which are made before or after a TUPE
transfer might be challenged by employees in a court or tribunal
and that transferee employers might not be able to enforce the new
terms, even if they have been agreed with the transferred
employees.
