TUPE Solicitors in Edinburgh & Wick
When an organisation or business (or their services) are being sold or transferred, both the outgoing employer (the transferor) and incoming employer (the transferee) must follow certain rules. These rules seek to protect employees’ rights when a transfer takes place by preserving the original employment relationship and terms of the employment contract.
There are a number of employment law issues that arise when a transfer is taking place. For instance, it must be determined whether the transfer is one under which the relevant TUPE rules apply. If there is a transfer of an entire business or a transfer of services, (either by outsourcing, re-tendering or in-sourcing), then the rules are likely to apply. In addition, there must be a group of employees who will be fundamentally carrying out the same activities after the transfer.
When a relevant transfer to which the rules do apply is taking place, all employees of the outgoing employer automatically transfer to the incoming employer, by virtue of the TUPE provisions. This means that employment rights and responsibilities are also transferred, which include:
- Contracts of employment – all the terms and conditions of an employment contract, such as job title, pay, holiday and sick pay, will transfer to the new employer;
- Accrued entitlements – all accrued holiday or bonus entitlement transfer to the new employer and they become responsible for such accrued rights;
- Liabilities of the previous employer – if an outgoing employer fails in some way in respect of the transfer, such as by dismissing an employee unfairly, that employee may take action against the new employer.
Employees must also be informed and consulted about when and why a transfer will take place, as well as:
- The legal, social and economic implications that the transfer will have on them; and
- The measures that will be taken in relation to their continuing employment.
The TUPE process can be complex and can cause disruption to employers, employees and customers if not carried out diligently. It is also important for the transfer to comply with the law, to limit any potential liabilities.
TUPE Lawyers in Edinburgh & Wick
At BBM Solicitors, our specialist employment lawyers have expertise in advising employees and employers about their rights and responsibilities in relation to Redundancy or TUPE.