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Essential points

  • TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations 2006.
  • These regulations apply to all businesses in the UK. They do not apply to public sector transfers, but if there is a private sector involved in the public sector change, then TUPE will apply. 
  • TUPE regulations determine how businesses must handle employees when the whole, or part, of a business changes hands.  
  • TUPE applies automatically by law. TUPE applies to a "relevant transfer" which could be either (or both) of the following situations:
    • A business transfer - where the whole or part of a business moves from one employer to another
    • A service provision change - where a change in service provider takes place. For example, when a service provided in-house is awarded out (an outsourcing), where a contract ends (and is given to another business) (a second-generation outsourcing) an/or when a business transfers work in-house (an insourcing).
  • In a TUPE process there are two parties:
    • The transferor - the party who carried out the business activities before the transfer, ie the outgoing employer.
    • The transferee - the party, or parties, responsible for taking on the business requirements after the transfer, ie the incoming employer(s). 

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Disclaimer 

​Please note: While every care has been taken in compiling this content, CIPD cannot be held responsible for any errors or omissions. These notes are not intended to be a substitute for specific legal advice. 

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