The Transfer of Undertakings (Protection of Employment) Regulations 1981 (‘TUPE’) give effect to the EC Acquired Rights Directive. The purpose of TUPE is to protect employees when the whole or part of the business for which they work is taken over by another company, firm or individual. If TUPE apply, the new employer (known as the ‘transferee’) takes on all the rights and liabilities associated with the employees who were employed by the old employer (the ‘transferor’) immediately before the transfer took place.

TUPE 1981 Regulations still apply to transfers that took place before 6 April 2006. However, for business transfers which take place on or after 6 April 2006 The Transfer of Undertakings (Protection of Employment) Regulations 2006 apply. Buddy has separate guidance notes on these Regulations.