Whenever a business is bought, the parties must comply with the Transfer of Undertakings (Protection of Employment) Regulations 2006, known as TUPE Regulations. These regulations are intended to provide a safeguard for employees.

The new employer steps into the shoes of the previous employer. This means the new employer must take on the existing employees on their existing contracts of employment.

The new employer cannot ask the previous employer to dismiss any employee before buying the business. Any employee dismissed, even by redundancy, because of the transfer of business is automatically deemed to be unfairly dismissed. There is now no limit to the amount of damages that can be awarded.

The new employer cannot change or dismiss an employee because of the transfer unless there is an economic or organisational reason under the TUPE Regulations.

We can provide expert legal advice on all aspects of TUPE Regulations.

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