Survey results released today by law firm Thomas Eggar reveal that the UK business community is well educated when it comes to employment law. No less than 64 per cent of company directors stated they are aware of employeesí rights under the Transfer of Undertakings (Protection of Employment) Regulations 1981 (ëTUPEí).
TUPE relates to occasions where a business or part of a business ñ be it a whole business/division or potentially an individual ñ is acquired by another company, but retains its original identity following the transfer. There may also be a significant transfer of tangible or intangible assets including the workforce.
Employees are protected in a TUPE situation and will transfer across to the new employer unless they elect not to do so. The new employer is prevented from dismissing staff from the acquired firm except on certain grounds, and any dismissal as a result of the transfer may be automatically unfair.
The new employer is also obliged to honour the existing terms of contract of the transferring employees, including pay and conditions of service, irrespective of whether they are different from their own employeesí terms, However, the terms of contract may be altered with consent and after consultation, although this is not straightforward.
The one area not covered under TUPE is pension rights, although there is still a requirement for a pension scheme to be made available to all staff. However the Government is considering this issue and we are waiting for revised TUPE Regulations. Failure to comply with the requirement of TUPE could form the basis of a claim for unfair dismissal.
Nick Hine, Employment Partner at Thomas Eggar is heartened by the survey results: ìThe law surrounding transfers of these nature is complex to say the least - especially in trying to conclude whether or not TUPE applies to the commercial transaction involved - and there have been numerous court cases over the years on this issue. Despite this is there is still confusion and each case is judged on the individual characteristics.
ìHowever, I am pleased to see that such a large proportion of directors have taken the time to develop an understanding of TUPE ñ something which can only be of benefit to commerce generally and the UK workforce as a whole.î
For specialist legal advice on TUPE please contact Thomas Eggarís Employment Unit on 0845 275 7777 or visit
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