TUPE - Acquiring or transferring a business or service

This section of FAQs answers the most common questions in relation to buying or selling a business or part of a business, or taking over, or transferring to another a service provided to a business e.g. catering or cleaning. TUPE regulations cover all such eventualities and a failure to abide by them can carry stiff penalties.

What is a transfer of an undertaking?
If I buy a new business, who is liable for any outstanding employment issues, e.g. disciplinary cases, claims to tribunals, injury claims?
I am buying a new business which has existing employees. What do I need to tell the new employees?
I am selling a business and my employees will go to the new owner. What do I need to tell my employees?
The staff in the new business I am buying are paid more than my existing staff. Can I reduce their pay so that everyone is equal?
I am buying a new business but I do not want all of their people as I want my own management team to take over. Can I make the new businesses’ managers redundant?
I am buying a new business and taking on their staff. One of their employees is objecting to the transfer. What do I do?
My employees are transferring to a new employer as a result of the sale of my pub. Does this mean that their continuity of employment starts all over again?
No. TUPE regulations expressly state that service carries over from the old employer to the new. So an employee who started with you in 1992 and transfers to a new employer under TUPE in 2007 is still deemed to have 15 years service – it does not start again from year 1. This is important since length of service affects redundancy entitlement, notice periods and certain other employment benefits.
Am I ever able to change the terms of an employee I have acquired through TUPE?
Can I increase the favourability of an employee's terms & conditions?