TUPE (Transfers of Undertakings)

What the process involves: TUPE, the Transfer of Undertakings (Protection of Employment) Regulations protects employees when a business, service, or part of an organisation transfers to a new employer. If TUPE applies, employees automatically move to the new organisation on their existing terms, with their continuity of service and employment rights fully preserved.

TUPE applies in two main situations:

• Business transfers - when a business or part of a business changes ownership.

• Service provision changes - when a service is outsourced, insourced, or moved to a new provider, such as when another company takes over the contract for IT services or office cleaning.

To identify whether TUPE applies, employers must assess whether the activity being transferred is fundamentally the same before and after the change, whether employees are assigned to that activity, and whether the transfer is genuine and ongoing.

The part of the organisation that's transferring must be in the UK for TUPE to apply.

The size of the organisation does not matter. For example, it could be a large organisation with many employees, or a small business with one employee.

TUPE regulations can apply to the public and private sectors, as well as charities.

If TUPE does apply, employers must follow strict legal processes, including:

• Informing and consulting affected employees and any representatives.

• Providing Employee Liability Information (ELI) to the incoming employer within the statutory timeframe.

• Managing proposed “measures” (any changes that may affect employees) and consulting on these properly.

• Ensuring a compliant transfer of employment contracts, liabilities, and obligations to the new employer.

• Documenting each step to demonstrate fairness, transparency, and legal compliance.

TUPE regulations protect anyone with the legal status of employee.

TUPE regulations might also protect anyone with the legal status of worker. If you're not sure whether someone is protected, Amicus People can help you as this is a complex area.

Which employees transfer?

All employees assigned to the business, or part of the business, that's transferring will automatically transfer with it. Employers cannot choose which employees they wish to transfer.

Business transfers

A business transfer is where a business, or part of a business moves from one employer to another. TUPE applies to a business transfer when all of the following apply:

1. The employer changes

2. Its main assets transfer to a new employer

3. Business activities are the same as or similar to before the transfer

 Assets may include:

• employees

• equipment

• business premises

• any work in progress

• goodwill, for example the business reputation or customer base

•  intellectual property, for example copyrights or trademarks

Business transfers can include:

• mergers – where 2 businesses come together to form a new one

• businesses that have just one employee

TUPE is not likely to apply where there will be a transfer of shares or equipment only.

Service provider changes

A service provider change occurs when contracts are taken over. This can occur if:

1. 'outsourcing' - a service provided in-house is taken over by a contractor

2. 'insourcing' - a contract ends but the work is transferred in-house

3. 'retendering' - a contract ends and is being taken over by a new contractor

TUPE applies to a service provider change when there's an 'organised grouping of employees'.

Service provider changes often include contracts for:

• catering

• security

• office cleaning

• waste collection

• machinery maintenance

TUPE does not apply if the contract is for:

• the supply of goods only, for example a food manufacturer getting their food supplies from a different supplier

• a single event or short-term task, for example a conference or an exhibition

International transfers

TUPE doesn’t always apply to international transfers but may apply when:

• an employee works abroad but the organisation is based in the UK

• the purpose of the transfer is to move the organisation, or part of it, abroad;  however, this could also be classed as a redundancy situation.

Amicus People can help:

Failure to follow TUPE regulations correctly can lead to significant financial penalties, including protective awards of up to 13 weeks’ pay per affected employee, making compliance essential for business continuity and risk management.

Amicus People are able to manage part of, or the entire TUPE process from start to finish. We assess whether TUPE applies, guide you through your legal obligations, draft all communications, and support meaningful consultation with employees and representatives. We prepare and review Employee Liability Information, advise on measures, and ensure every step is compliant, transparent, and aligned with best practice. Our expertise protects your organisation from costly errors, reduces operational disruption, and ensures a smooth, confident transition for both your business and your employees.

Want to understand more? Get in touch today, let's start a conversation.