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The Transfer of Undertaking Protection of Employment (TUPE) relates to the how your employees should be treated when your business goes through a change of ownership or when you take over another business.

The TUPE law regulations stipulate that all contracts between the old employer and the employees are transferred without any changes to the new employer. This is the opposite of the common law position, in which if either signatory to the contract changes the contract itself is terminated automatically.

The TUPE Law regulations are intended to provide a safeguard for your employees, as any subsequent dismissal or significant change to their terms and conditions of employment that comes about as a result of the transfer of ownership could potentially be classed as unfair dismissal. In such circumstances, your employee could have a case against you as their new employer.

This area of law is intended to protect transferring employees from suffering any detriment due to transfer of employment. There can be some misunderstanding by employers in interpreting when the law actually applies, but as the adage states; ignorance of the law is no excuse. An astute business person will see this as an opportunity to expand their labour force and broaden their skills base. This is remarkable acumen in business matters. In a complex area of law and Employment Law Support will help you to make shrewd business decisions.