TUPE—transfer of rights and liabilities
TUPE—transfer of rights and liabilities

The following Employment guidance note provides comprehensive and up to date legal information covering:

  • TUPE—transfer of rights and liabilities
  • Liabilities in relation to transferring employees
  • Terms that cannot be replicated
  • Pensions
  • Collective agreements
  • Trade union recognition
  • Employee consultation bodies
  • Liabilities for pre-transfer dismissals
  • Liabilities for failure to inform and consult

The Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE 2006) provide that, where there is a relevant transfer, there is a statutory novation of the employment contracts of the transferring employees: the transferee effectively steps into the shoes of the transferor.

Liabilities in relation to transferring employees

A relevant transfer does not terminate the contract of employment of any person employed by the transferor and assigned to the organised grouping that is subject to the transfer. Instead, the contract of employment has effect after the transfer as if originally made between the employee and the transferee. For further information, see Practice Note: TUPE—transfer of employees.

The transferee acquires:

  1. all rights, powers, duties and liabilities under or in connection with the contracts of employment of transferring employees

  2. liability for all pre-transfer acts and omissions of or in relation to the transferor in respect of transferring employees or their contracts of employment

Employees therefore retain their existing terms and conditions, except certain rights relating to old age, invalidity or survivors' benefits under occupational pension schemes, which are excluded from the scope of the automatic transfer principle. For further details in relation to pensions, see Pensions below.

The scope of regulation 4 extends beyond (express or implied) contractual terms and covers all rights, powers, duties and liabilities under or in connection with the