22nd October 2025
Managing a TUPE transfer can feel daunting for any employer. The rules are detailed, the risks are high, and mistakes can lead to costly claims.
Whether you’re buying or selling a business, outsourcing a service, or bringing one back in-house, understanding your obligations under the Transfer of Undertakings Protection of Employment Regulations 2006 (TUPE) is essential.
Sarah Everton, Head of Employment Law at Myers & Co, explains when TUPE applies, what your responsibilities are, and how to avoid common pitfalls, so you can protect your business and employees.
If you’re buying or selling a business, outsourcing a service, or bringing one back in-house, TUPE could apply.
TUPE is designed to protect employees when the business they work for changes hands. It ensures their jobs, terms and conditions, and continuity of service are preserved.
Failing to follow TUPE correctly can lead to costly claims for unfair dismissal or failure to consult. Understanding your obligations is essential to avoid legal and financial risk.
TUPE applies in two main situations:
It does not usually apply to share sales or one-off supply agreements. If you’re unsure whether TUPE applies, seek legal advice early.
Both the outgoing employer (transferor) and incoming employer (transferee) have duties, including:
Inform and consult employees: You must tell affected staff (or their representatives) about the transfer, its timing, and any planned changes. If you fail to consult, you could face compensation of up to 13 weeks’ pay per employee.
Provide employee liability information: The old employer must share details of transferring employees, such as contracts, disciplinary records, and claims, at least 28 days before the transfer.
Preserve terms and conditions: Employees move over on their existing terms. Changes are only allowed for an economic, technical, or organisational (ETO) reason involving workforce changes.
Redundancies purely because of the transfer are automatically unfair. However, redundancies may be lawful if there are a genuine business need and an ETO reason, such as restructuring.
A fair redundancy process and proper consultation are still required.
Late consultation – leaving it too late to inform staff can lead to claims.
Changing terms without a valid reason – even well-intentioned changes can be unlawful.
Ignoring agency workers – you must also provide information about agency staff working in the business.
TUPE transfers can be complex, but with the right advice, you can manage the process smoothly and protect your business from risk.
Our employment law team works with employers across Staffordshire to plan transfers, handle consultations, and avoid costly mistakes.
If you require guidance on TUPE transfers tailored to your business needs, don’t hesitate to contact Sarah Everton. Call us today or submit a quick enquiry to receive clear, practical advice from our specialist employment law team.
