In Brief: Understanding TUPE for UK Businesses
TUPE is the UK legislation that protects employees when the business or service they work for moves to a new employer. It ensures staff transfer automatically with their existing terms, conditions, and continuity of service unchanged. For employers, TUPE creates defined legal responsibilities to inform and consult employees, share accurate employee information, and handle the transition fairly. Understanding TUPE helps businesses minimise legal risk, support employee confidence, and maintain smooth operational continuity during periods of change.
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What Is TUPE? Understanding the Basics
Managing organisational change is one of the biggest challenges leaders face, especially when it involves employees transferring from one business to another. Whether you’re acquiring a company, outsourcing a service, or bringing outsourced work back in-house, you may find yourself asking:
What is TUPE in HR? And what does the TUPE procedure actually involve?
This guide breaks down everything employers need to know about TUPE law, including the TUPE definition, your responsibilities, and how to manage the process confidently and compliantly.
When HR professionals and business owners ask “TUPE – what is it?” or “What is a TUPE?”, the answer is surprisingly straightforward.
TUPE stands for:
Transfer of Undertakings (Protection of Employment) Regulations 2006.
The simplest TUPE definition is:
TUPE is the UK law that protects employees when the business they work for, or the service they deliver, transfers to a new employer.
The purpose of TUPE is to make sure employees do not lose their job, pay, or key terms and conditions purely because ownership or responsibility for their work is changing hands.
This legislation gives employees confidence that they won’t be treated unfairly in times of uncertainty, and it gives employers a clear framework to follow during business changes.
What Does TUPE Mean for UK Employers?
If you’re wondering what is TUPE in UK HR practice, the answer is that the regulations place very specific duties on both outgoing and incoming employers. These include:
- Employees Transfer Automatically
Under TUPE law UK, all employees assigned to the business or service being transferred move automatically to the new employer.
There is no need for new employment contracts, renegotiation of pay, or dismissals – these are prohibited unless there is a valid business reason.
- Terms and Conditions Are Protected
Employees retain:
- Pay and benefits
- Hours and working patterns
- Holiday entitlement
- Sick pay arrangements
- Contractual rights
- Length of service
The incoming employer cannot simply change terms for cost-saving or convenience.
- Employee Rights Are Carried Over
Under the TUPE definition, key rights such as redundancy protection, maternity rights, and disciplinary records transfer in full.
The new employer essentially “steps into the shoes” of the old employer.
- Both Employers Must Provide Information
Before the transfer takes place, the outgoing employer must give the incoming employer details of all transferring staff. This is known as Employee Liability Information (ELI) and includes contracts, disciplinary records, grievances, and more.
When Does TUPE Apply?
Many employers wonder what is TUPE UK applied to? TUPE covers two main scenarios:
- Business Transfers
This is when a business (or part of one) changes ownership but continues operating in a similar way. Examples:
- Buying or selling a company
- Mergers or acquisitions
- Selling part of a business unit
- Service Provision Changes
This occurs when:
- A service is outsourced (e.g., hiring a contractor for cleaning or catering)
- A service is insourced (bringing contracted work back in-house)
- A contract moves from one provider to another
These common scenarios mean TUPE affects businesses of all sizes across the UK.
What Is the TUPE Procedure? Step-By-Step Overview
Understanding the legally required TUPE procedure is essential for compliance and maintaining positive employee relationships.
Step 1: Identify Whether TUPE Applies
Employers must begin by assessing whether TUPE regulations apply to their specific circumstances. If the business or service will continue in a recognisable form, TUPE is likely triggered.
Step 2: Inform and Consult Employees
This is one of the most critical responsibilities under TUPE law UK.
Employers must inform affected employees (or their representatives) about:
- The fact the transfer is happening
- When it will happen
- Why it is happening
- The implications for employees
- Any planned measures, such as structural or operational changes
Consultation must be meaningful – not simply a tick-box exercise. Employees must be given a genuine opportunity to ask questions, raise concerns, and offer feedback.
Step 3: Provide Employee Liability Information
The outgoing employer must supply full ELI at least 28 days before the transfer. Missing, inaccurate, or late information can lead to significant financial penalties.
Step 4: Manage the Transfer
On the day of transfer:
- All employee rights pass automatically to the new employer
- Payroll and HR records move over
- Contracts continue unchanged
The new employer becomes responsible for all employment obligations from that moment onwards.
Step 5: Post-Transfer Integration
This is often where HR adds the most value. Employees may feel uncertain, anxious, or disengaged after a transfer.
A strong people-focused approach can ensure:
- Employees feel included and valued
- Teams integrate smoothly
- Leaders communicate clearly
- Engagement and productivity stay high
What Cannot Be Changed Under TUPE?
A common question is whether terms and conditions can be updated after a transfer.
The short answer is not easily.
Employers cannot change:
- Pay
- Hours
- Benefits
- Holiday
- Job location (without mobility clauses)
- Duties (beyond contractual flexibility)
Changes are only allowed if:
- They are for an economic, technical or organisational (ETO) reason, and
- The employee agrees
This is why HR due diligence is essential before any transfer takes place.
What Happens If TUPE Is Not Followed?
Non-compliance with TUPE law UK can lead to:
- Employment tribunal claims
- Protective awards of up to 13 weeks’ pay per employee
- Compensation for failure to inform and consult
- Reputational damage
- Contractual disputes between employers
For SMEs, these risks can be significant – making expert HR guidance invaluable.
Why TUPE Matters for Employers
Understanding what TUPE is in HR is crucial because TUPE protects not just employees, but the business itself. Employers who manage TUPE well benefit from:
- Smoother transitions
- Reduced legal risk
- Lower turnover
- Better employee engagement
- Stronger relationships between outgoing and incoming teams
- Efficient operational continuity
Handled correctly, TUPE can be an opportunity to build trust, strengthen culture, and set up the new business structure for long-term success.
Final Thoughts
TUPE can initially seem complex, and it’s no surprise employers frequently ask “TUPE – what is it?” or “What is TUPE UK? And how does it affect me?” But with the right support and a clear understanding of the TUPE procedure, organisations can navigate transfers effectively and compliantly.
Whether you’re outsourcing a function, acquiring a business, or undergoing organisational change, expert HR guidance ensures that TUPE is managed smoothly, lawfully, and with people at the heart of every decision.
Contact us today to discuss how we can assist your organisation with TUPE guidance or any other HR issues.
