What is a TUPE transfer?

TUPE (Transfer of Undertakings (Protection of Employment) Regulations 2006, as amended) automatically transfers employees from the old employer to the new employer when a business or relevant service changes hands. Your existing terms and conditions — including salary, hours, holiday entitlement, seniority, and continuity of employment — transfer unchanged. The new employer cannot unilaterally change your terms because of the transfer.

TUPE applies in two scenarios: a business transfer (where an economic entity retains its identity after the transfer, typically a company sale or asset purchase) and a service provision change (where a contract to provide services is awarded to a new contractor, or where the service is brought back in-house). The Regulations apply even if only part of a business transfers.

Dismissal of an employee because of a TUPE transfer — whether by the old or new employer — is automatically unfair (no qualifying service period required). However, the new employer can make changes to terms or dismiss employees where there is an 'economic, technical, or organisational reason entailing changes in the workforce' (an ETO reason) — though this must be genuine and requires a separate fair procedure.