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.