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TUPE and business sales

When businesses are bought or sold, or in cases where there is outsourcing or a change of service provider, TUPE, the Transfer of Undertakings (Protection of Employment) Regulations 2006 may apply.

TUPE is designed to protect employment rights, as existing employees will transfer to the acquiring employer or service provider under the same terms as their existing contract.  Employment liabilities will also transfer, such as pension arrangements. 

A variety of complex obligations will also be imposed on both old and new employers.  Old employers may be required to give warranties or indemnities regarding items such as liability for unpaid salaries and previously earned bonuses.

TUPE adds a layer of complexity to a business sale.  Getting the process wrong can lead to claims for unfair dismissal as well as claims for protective awards by employees, which can be significant and lead to costly disputes.

Longmores’ team of specialist solicitors have wide experience in TUPE, so we can help you to minimise risk in carrying through your business sale or acquisition.  We advise businesses of all sizes on issues including:

  • Contract review and negotiation ensuring appropriate TUPE protections
  • The process of providing information and carrying out consultation and election of employee representatives
  • Drafting written communications to the employees
  • Notification of employee liability information
  • Post TUPE guidance and support
  • TUPE process, application and management.

Our approach is robust, practical, no-nonsense and commercial.  We have a strong track record of minimising the occurrence of employment law disputes arising from TUPE issues.

 

Examples of our work:

Supporting a UK car parts manufacturer through the TUPE process and the consequent redundancy of 250 staff, resulting from a decision to close one UK plant and relocate manufacturing jobs to group companies overseas.

Advising on TUPE implications during the sale of a leading self-storage business including drafting warranties and indemnities to protect our client against future employment claims.  This enabled the smooth sale of the business combined with greater certainty for employees, the future management team and our client.

Clarifying complex TUPE issues surrounding an agency worker’s contract on the transfer to a client of the company, ensuring fair and lawful treatment of the individual.

Advising a leading recruitment company on the high value matters with regards to the implications of TUPE and drafting appropriate contractual provisions. 

 

Related Services:

Contracts, policies and handbooks  Termination and settlement agreements  

Disputes, grievances and disciplinary procedures Restrictive covenants  

Restructuring and redundancy Tribunal representation  

Richard Gvero

Joint Senior Partner, Head of Commercial and Head of Employment

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Richard is an extremely good lawyer to deal with – he is practical and efficient and nothing is too much trouble for him.
  • Chambers and Partners UK Directory 2017
  • About: Richard Gvero
Richard brings a deep knowledge and experience of employment and commercial disputes to bear for his clients with a clear focus on outcomes.
  • Executive Chairman, technology service provider
  • About: Richard Gvero
I have worked with Richard on a number of occasions relating to employment situations. He is always responsive and will make himself available at short notice whenever he can. I have continually found his advice and recommendations to be sound, pragmatic, practical and extremely helpful.
  • Business owner, management consultancy
  • About: Richard Gvero
Richard has been fabulous at dealing with HR issues. I recommend him most highly.
  • Headteacher, independent school
  • About: Richard Gvero
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