Transfer of Undertakings Solicitor - TUPE Regulations Compensation Claims

When a business changes hands or a portion of the business becomes part of another business in a merger, the individuals employed in the business retain their employment contract under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) and its amendment Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014. If you do not understand your rights during the time of change, phone our helpline and get expert advice from our transfer of undertakings solicitors.

TUPE Guaranteed Rights

The TUPE regulations were established to give employment safeguards to individuals who may have concerns regarding mergers. It may be a partial or full movement of assets to another enterprise or the entire sale of an organisation. An annexation, merger or an entire sale of holdings is known as a "transfer of undertakings".

The provisions of TUPE regulations makes it a requirement that the new enterprise must automatically accept the employees from the outgoing employer. TUPE regulations stipulate that an employee's contract is transferred intact with all the former conditions and the employee retains the tenure or length of employment earned with the former company. Directives contained in the TUPE regulations pertain to all companies, businesses or corporations in the United Kingdom regardless of size, from the largest corporation, employing thousands to the smallest family run business with just a few employees. In most cases employees who work in foreign countries, even for those with corporate headquarters in the UK may be governed by the laws of the country in which they work.

If you have a legal question or believe that your employment rights are threatened by a merger or acquisition, call our transfer of undertakings helpline for advice and guidance at no cost and with no further obligation.

TUPE Unfair Dismissal

A dismissal is deemed unfair if the dismissed employee is terminated primarily due to the transfer of undertakings. In these cases, the employee can bring the case before the Employment Tribunal so long as they have been in the employ of the organization for at least a year. Claims must be filed within three months of dismissal. So as not to be ordered to pay compensation to a dismissed employee, an employer must prove they acted in a reasonable manner and that the firing was primarily based on an “economic, organizational or technical necessity.” The employer may still have to pay compensation in the form of redundancy payments, even if the dismissal is shown to be fair.

TUPE Constructive Dismissal

TUPE Regulations stipulate that an individual can file a constructive dismissal claim if a substantial change in the conditions of their employment occurs, forcing the employee to resign due to unacceptable working conditions. An employee may not claim constructive dismissal, however, based only on a change in the identity of the employer.

Employee Representatives

All employee representatives are required to receive advance notification of a transfer or anything related to a transfer. Failure to comply with this notification requirement may result in compensation of up to 13 weeks of pay. If the employee is not properly represented by a union or other appropriate representative, a representative will be elected.

Transfer of Undertakings Solicitors

To receive free, confidential advice from a transfer of undertakings solicitors about making application to an employment tribunal for an unfair dismissal claim or if you have quit after a transfer of undertakings and feel you may have a constructive dismissal case, email our offices or call our helpline.