The aim of TUPE is to protect employees when a business changes hands or there is a change of service provider. In those circumstances, an employee’s contract of employment would normally terminate.
However, if TUPE applies, the new employer (known as the buyer) takes on all the rights and liabilities associated with the employees who were employed by the old employer (known as the seller) immediately before the transfer took place. The employees’ continuity of employment will be preserved. This protection also applies in contracting out scenarios, where the employee may transfer to the new provider of the services.