TUPE

A. Yes. TUPE can apply where a business is sold to a company based abroad — even outside the European Union, as long as the business being sold is “situated immediately before the transfer in the UK”.

This was tested in the case of Hollis Metal Industries Limited v GMB [2007] UKEAT/171/07. This is important because it means that collective rights to information and consultation are triggered where a business transfers overseas.

Generally speaking, both the UK seller and the overseas buyer will be jointly liable for any protective award for failure to consult, making it easier to enforce the full award against the UK-based company.

Even though the sale of the business to a company in Italy is covered by TUPE, this doesn’t mean you are expected to relocate to Italy.

Your employer must inform and consult with reps about the implications of the move for those affected well in advance of the transfer date.

There may be opportunities for you to move to a different part of the UK-based business before the transfer takes place. If not, those with enough service will be entitled to a redundancy payment.