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Q. What is TUPE? A. The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE 2006) TUPE is there to protect UK employees when a business changes to a new owner. TUPE regulations apply to what are known as ‘relevant transfers’. If you are considering taking on an existing contract or buying a business then as a business owner you need to be aware of the TUPE regulations. There are two broad categories business transfers and service provision changes. Business transfers Q. In simple terms, is the incoming business the same as the outgoing business? •
Has there been a transfer of assets such as building property (although this is not essential)?
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Are there other assets like copyright or goodwill that passes across at the time of the transfer?
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Have the majority of employees been taken over?
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Have the customers transferred with the business?
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Is there a high degree of similarity between the activities carried on before and after the transfer?
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If the answer to several of the questions is 'yes', then TUPE regulations are likely to apply. In some cases only one of those factors has been enough.
Service provision changes Occurs when a client who engages a contractor to do work on its behalf is either: •
reassigning such a contract, whether by contracting out, outsourcing or re-tendering, or
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bringing the work back ‘in-house’ with the service being performed in-house by the client.
The activities undertaken must also be essentially the same after the transfer as they were before it. It will not be a service provision change if: •
the contract is wholly or mainly for the supply of goods for the client’s use, or
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the activities are carried out in connection with a single specific event or a task of short-term duration.
The information contained in this article is for general information purposes only and does not claim to be comprehensive advice. If you need any assistance on this or any other issue, then please contact
Kerry McGowan for more detailed information: 07970 489321. Free 1 hour consultation for all new HR & H&S clients.