Labour Research August 2008

Law Queries

TUPE

Q: The department that I work for is going to be contracted out to another company and I have been told that TUPE applies. How long are my terms and conditions protected for and what happens if the new firm decides to relocate after a year or two?

A: There is no time limit to the protection given by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE). These ensure that you keep all your existing contractual terms and conditions when your employment transfers.

However, changes to your terms and conditions in the future are only covered by the TUPE regulations if the reason for the change is one connected to the transfer.

The more time that has passed since the transfer of undertakings took place, the harder it may be to show a connection with the transfer, but it is still possible to do so.

A change of location a few years down the line is likely to give rise to redundancy, but even if this is shown to be connected with the transfer it is not necessarily unlawful.

The TUPE regulations require the employers to inform and consult employee representatives (the union, if recognised) about the transfer and any proposed changes.