The Transfer of Undertakings (Protection of Employment) Regulations 2006, commonly referred to as Tupe, originate from the European acquired rights directive. The regulations were recently updated with effect from 31 January 2014. The Government has also updated its guidance regarding the application of Tupe.
These regulations are likely to apply in any situation where a UK business (or part of a business) is transferred to another employer (not necessarily based in the UK) or an organisation changes the way in which it delivers its services, such as by outsourcing to a contractor. The broad effect of Tupe is to preserve the continuity and terms and conditions of employment of employees who are transferred to a new employer.
Tupe also imposes a number of obligations on the transferring employer (the transferor) and the receiving employer (the transferee) to inform and consult with affected employees.
The effect of Tupe on insolvent businesses is considered separately.