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TUPE (Transfer of Undertakings (Protection of Employment) Regulations 2006) is an important piece of legislation aimed at protecting the terms and conditions of employees when a business, or part of a business, is transferred or sold.
Under TUPE, employees transfer to a new employer together with their existing employment rights and liabilities.
We understand that the effect of the TUPE legislation can have unusual consequences and that either an employer does not wish to inherit a seller’s employees or those employees do not wish to transfer following a TUPE transfer.
We are well placed to provide practical advice to our employer clients on the impact of a TUPE transfer and to formulate a strategic plan in advance of the transfer taking place.
Some TUPE issues may arise following the transfer with harmonisation of two workforces or where unfair dismissals risk being connected with a TUPE transfer and we can assist accordingly.
Some of our employer clients will need a view and guidance on whether TUPE applies to a particular scenario where there is a transfer of employees. This is key employment advice which needs to be right from the outset to avoid legal liabilities.
Whether your business is acquiring new employees as part of a transfer covered by TUPE or is managing the transfer of an existing workforce to a new employer, we have considerable experience in the area and can provide practical hands on advice.
If you are the new employer it is key that you are provided with the right information about the employees transferring to your company. You are also legally obliged to provide certain information to the company which currently employs the transferring employees in order that the employees can be briefed about their new employment position.
If your company is transferring employees under TUPE, we can assist with running a comprehensive information and consultation process in line with the TUPE legislation. We can also assist in managing the risk of compensation for a group of employees when there is a failure to inform and consult on a TUPE transfer.
We commonly advise on the negotiation of warranties and indemnities in sale documentation so that the risk of employment liabilities is more fairly balanced on a sale.
New employers have limited ability to amend the terms and conditions of an employment contract for an employee whose employment has transferred under TUPE.
It is sensible to seek legal advice before attempting to make any variations to employment terms to harmonise contracts in a post TUPE workplace.
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