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Certainty at last: TUPE does apply to Administrations

This article was first published in Financiers Worldwide on 1 May 2012.

The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) provide employees with a number of key protections when the organisation in which they work is transferred from one owner (the transferor) to another (the transferee). First, TUPE provides for the automatic transfer to the transferee of the employees’ employment on the same terms and conditions as before (Regulation 4(1) of TUPE) and variations to the employees’ contracts are generally void, even if the employees agree to them (Regulation 4(4) of TUPE). Secondly, the transferee will inherit most employment-related liabilities (Regulation 4(2) of TUPE). Thirdly, any dismissal that is connected with the transfer is automatically unfair, unless it is for an “economic, technical or organisational change entailing changes in the workforce” (Regulation 7 of TUPE). Fourthly, employees have the right to be informed about the transfer and consulted about any changes envisaged by the transferee post-transfer (Regulation 13 of TUPE). More…