Q&As

What is the likelihood of a commercial building being viewed as an undertaking for the purposes of a business transfer under TUPE 2006?

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Published on LexisPSL on 06/10/2016

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • What is the likelihood of a commercial building being viewed as an undertaking for the purposes of a business transfer under TUPE 2006?

What is the likelihood of a commercial building being viewed as an undertaking for the purposes of a business transfer under TUPE 2006?

Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE 2006), SI 2006/246 queries often arise in the context of commercial property transactions. For example, the freehold of a commercial building, such as an office block or a shopping centre, may be acquired by a new landlord, a lease of whole or part of a commercial building may be assigned from one tenant to another, or a landlord may wish to change the provider of property management services (managing agent) for a particular building. The commercial building may have a team of staff, such as a building manager, caretakers, security staff and cleaners, who work at the building. Such employees may:

  1. be engaged directly by the landlord (eg a building manager)

  2. be engaged directly by the managing agent

  3. or, more typically, be engaged by a third party service providers (eg cleaners and security staff)

Relevant transfers for the purposes of (TUPE 2006), SI 2006/246 are:

  1. business transfers—involving the transfer of an undertaking or business, or part of an undertaking or business situated immediately before the transfer in the UK to another person where there is a transfer of an economic entity that retains its identity following the transfer

  2. service provision changes—involving a change in

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