This factsheet provides an overview of the transfer of undertakings.
Aim and relevant legislation
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 transferee (i.e. the incoming business owner or provider) takes on some of the rights and liabilities associated with the employees who were employed by the transferor (i.e. the old business owner or provider).
TUPE implements a European Law Directive. This means that English Courts and Tribunals are required to construe TUPE in a way that gives effect to the general purpose of the underlying Directive, namely to safeguard employees’ rights on a transfer of a business.
