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Transfer of Undertakings
When a business changes ownership there is a multitude of complexities that the new business owner must deal with and TUPE must be a priority.
Quite often in these situations employment legislation is left until last and this can pose a risky strategy as employees are protected under TUPE (Transfer of Undertakings, Protection of Employment) legislation.
At HR Team, we have witnessed a huge increase in organisations requesting guidance with TUPE year on year, across NI, the UK and in the Republic of Ireland.
This is partly due to the recognition by smaller organisations that TUPE legislation is not only the preserve of multinational companies.
TUPE can apply regardless of the size of the business. Organisations would be best advised to seek professional assistance when dealing with this complex area of employment legislation.
Please get in touch for further information on this service.
TUPE, meaning ‘Transfer of Undertakings (Protection of Employment)’ regulations, is a set of regulations pertaining to when a business is transferred to a new employer.
Investigate the existing pension rights of transferring employees. Identify whether or not there is an “occupational pension scheme”. Check whether or not there are any pension rights that could transfer under TUPE. Identify whether or not there is a duty to provide a minimum level of pension provision after the TUPE transfer. Be aware of special pension rules that apply to public-sector transfers.
TUPE regulations essentially preserve the continuity of employment for an employee, as well as their existing terms and conditions of employment as established under previous ownership.
No. The Regulation states that, where an employee informs either the original employer or the new employer that he or she objects to becoming employed by the new employer, this will have the effect of terminating the employee’s contract and he or she is not to be treated for any purpose as having been dismissed. Thus, it is effectively deemed as resignation.