What is meant by transfer of undertakings?

What is meant by transfer of undertakings?

The transfer of an undertaking refers to the transfer of a discrete economic entity to another party, for example, the sale of a business to a new owner.

What is a transfer of undertaking in employment law?

TUPE stands for Transfer of Undertakings (Protection of Employment). A ‘TUPE transfer’ happens when: an organisation, or part of it, is transferred from one employer to another. a service is transferred to a new provider, for example when another company takes over the contract for office cleaning.

Can an employer transfer an employee to another company?

An individual’s employment cannot be automatically transferred to another employer without following the proper procedures under the Transfer of Undertakings (Protection of Employment) (TUPE) Regulations, a tribunal has confirmed.

How do you use TUPE in a sentence?

Examples of TUPE in a sentence This means that changes to workforce numbers or job functions must be the objective of plan  Changes to location of work are now covered as an ETO reason under TUPE.

How do you transfer Tupes?

TUPE transfer checklist for the incoming employer

1. Obtain essential information from the outgoing employer.
2. Obtain ’employee liability information’
3. Provide any ‘measures’ information to the outgoing employer.
4. Meet with transferring employees.
5. Identify any contractual benefits.
6. Write to transferring employees.

What is the purpose of TUPE?

TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations and its purpose is to protect employees if the business in which they are employed changes hands. Its effect is to move employees and any liabilities associated with them from the old employer to the new employer by operation of law.

What is TUPE redundancy?

If you’re made redundant after a TUPE transfer, your new employer is responsible for any redundancy pay. This includes the time you worked for your old employer before you transferred. If it’s in your contract that you carried over, you’ll also get ‘enhanced’ redundancy pay (more than the legal minimum amount).

Who is eligible for TUPE?

Only employees on permanent or fixed term contracts are liable for TUPE transfer. Agency workers are not. If you happen to have employees who are temporarily assigned to work in a different office or department within the business or for another organisation, this can complicate the situation.

Can an employee reject a transfer?

Generally, the employee is not treated as having been dismissed but there are certain circumstances in which they can claim unfair dismissal. Although there is no specified manner in which an employee must refuse to transfer, it is sensible for the transferor to obtain the employee’s refusal in writing.

Can an employee refuse to be transferred?

An employee cannot commit unfair labour practices against their employers. Should the employee have good reason for refusing a transfer an employer may consider retrenchment as provided for by section 189 of the LRA, provided the transfer is based on operational requirements.

What does TUPE mean in slang?

(UK, colloquial) To transfer (an employee or group of employees) to another employer under TUPE regulations.

What is the meaning of TUPE?

Transfer of Undertakings
When a business changes owner, its employees may be protected under the Transfer of Undertakings (Protection of Employment) regulations ( TUPE ).

What is a transfer of undertakings?

Transfer of Undertakings. A transfer of undertakings occurs when a business or part of a business is taken over by another employer as a result of a merger or transfer. When a transfer takes place there is a legal obligation on the new employer to take on the existing staff of the business or the part of the business concerned.

What is the transfer of Undertakings (Protection of Employment Regulations 2006)?

Under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), you are required to inform and consult the representatives of those employees affected by the transfer.

What is the Transfer Act 2006?

It is an important part of UK labour law, protecting employees whose business is being transferred to another business. The 2006 regulations replace the old 1981 regulations (SI 1981/1794) which implemented the original Directive.

Who decides if a TUPE transfer takes place?

In the event of a dispute, only an employment tribunal or a higher court can decide this. Where TUPE applies, existing employees of the undertaking transferred automatically become employees of the business that takes the undertaking over.