Responsibilities to employees if you buy or sell a business

Introduction

Under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), when all or part of a business is bought or sold or there is a service provision change, the terms and conditions of the employees who transfer in the sale are preserved. In other words, in almost all cases, the new employer cannot change the transferred employees' terms and conditions to match those of its existing employees.

This guide explains which transfers are covered by TUPE, the responsibilities of the old and new employers, the rights of employees, changing terms and conditions of employment, the requirements to inform and consult employees affected by the transfer and the transfer of insolvent businesses.

Subjects covered in this guide

• Introduction
• What is meant by a transfer
• Your responsibilities to employees transferred out of your business
• The transfer of employee liability information
• Your responsibilities to employees transferred into your business
• Changing terms and conditions after a transfer
• Dismissal before or after a transfer
• Informing and consulting employees about business transfers
• Transfers of insolvent businesses
• Transfers and employee relations