Labour Research July 2005

Law Queries

Business transfers

Q: I can find nothing in the TUPE rules to say how long an employee's terms and conditions are protected following a transfer.

A: There is no time limit on the application of the Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE). In theory, after a transfer you are entitled to the same terms and conditions for as long as your employment lasts.

However, a change to terms and conditions is only invalid under TUPE if the reason for the change is the transfer. Following a transfer, the same rules apply in respect of changes to terms and conditions as where there is no transfer - they can be varied with consent, but any attempt by an employer to change them without consent will be a breach of contract.

The key issue here is why the changes were made and whether they were agreed. As in cases that do not involve a transfer, if the change was imposed on you but you have not complained within a reasonable time, a tribunal may find that you have accepted the new terms.

Clearly, the more time that has passed since the transfer, the harder it will be to show that the transfer was the reason for the change to the terms and conditions.

For further information about changes to terms and conditions, see the LRD Booklet Contracts of employment - a legal guide, price £4.70.