An employer’s guide to TUPE and the potential future changes
The Transfer of Undertakings (Protection of Employment) Regulations 2006 (commonly referred to as TUPE) are a critical set of laws in England & Wales that protect employees when a business, service, or part of a business is transferred from one employer to another. While the regulations are designed to safeguard employees, they also place significant obligations on the employers involved in the transfer process.
TUPE applies to situations where there is a transfer of an undertaking. This generally involves (but which shall not be limited to) the sale of a business, merger of a business and/or the outsourcing of services.
Current obligation under TUPE
For employers, TUPE creates several key obligations, including (but which shall not be limited to):
- Automatic Employee Transfer: Employees of the transferred business automatically become employees of the new employer on the same terms and conditions, including their length of service. The new employer must honour existing employment contracts and cannot impose changes unless there are valid economic, technical, or organisational reasons.
- Protection from Dismissal: Employees are protected from dismissal solely due to the transfer, unless the employer can show one of the aforementioned reasons for the dismissal. This makes it more difficult for employers to restructure or reduce staff following a transfer, particularly if the reason for doing so is linked to the transfer itself.
- Consultation and Information Requirements: Employers involved in a transfer are required to relevantly inform, and consult with, affected employees or their representatives (such as trade unions or employee representatives) before the transfer occurs. This consultation could include, for example, the reasons for the transfer, the impact on employees, and any measures the new employer intends to implement following the transfer.
Change on the horizon
The Labour government has recently launched a ‘call for evidence’, under its “Plan to Make Work Pay”, to obtain information for policy changes to TUPE, and to implement its plan to strengthen the TUPE regulations.
One of Labour’s future plans also includes removing the distinction between employees and workers, however this is still to be consulted on in full. One of the subsequent consequences of this could, therefore, be that all current workers would then fall within scope to transfer under TUPE. However, there are practical difficulties with this in that, for example, workers may not owe ongoing obligations to the employer and workers may not operate under its control, so it may be difficult for an employer to consult with a worker if they only work occasionally.
Whether workers fall within the scope of TUPE has previously been an area of uncertainty, and the previous Conservative government proposed amending TUPE to clarify the position that workers were not protected, however the government changed before this could be implemented. Labour’s current position means that these changes seem very unlikely to happen now and, instead, Labour will need to address the difficulties of workers being caught within the scope of TUPE.
For employers, TUPE presents both challenges and opportunities. While the regulations are designed to protect employees, they also place significant responsibilities on employers. By understanding the key requirements and changes, employers can navigate TUPE transfers smoothly.
This article was first published in London Business Matters in July 2026.
Disclaimer: The information on the TV Edwards website is for general information only and reflects the position at the date of publication.
