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TUPE 2006 Regulations
The Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE 2006”) applies wherever there is a relevant transfer. A relevant transfer may be a service provision change from one person (A) to another (B), or where an undertaking is transferred from one person (A) to another (B). Where TUPE 2006 applies:
- Individuals who were employed by A immediately before the transfer automatically become employees of B from the time of the transfer, on the same terms and conditions;
- B inherits A’s rights and liabilities for these employees;
- Collective agreements made by or on behalf of A are inherited by B;
- Where A recognises a trade union in respect of employees being transferred and, following the transfer, the undertaking maintains a distinct identity from any other undertaking owned by B, B must recognise that union in respect of those employees;
- A must inform recognised trade unions or employee representatives about the consequences of the transfer and B must provide A with sufficient information in this regard;
- In certain circumstances it may be necessary for A and/or B to consult with recognised trade unions or elected employee representatives concerning the transfer; and
- The dismissal of any employee for a reason connected with the transfer, either before or after the transfer, is automatically unfair unless this was for an economic, technical or organisational reason entailing changes in the workforce.
The law in this area is extremely complicated. If you are buying or selling a business and believe that TUPE 2006 could apply, please contact Albert Bargery on 01296 318500 for further advice.