TUPE is the Transfer of Undertakings (Protection of Employment) Regulations 2006 which is a legislative requirement to protect employees on the transfer of the business in which they are employed, or where services cease to be provided by one employer and instead are provided by another.
- Protection of employees on transfer of undertaking
- TUPE regulations aim to maintain employees continuity of employment and enjoy same terms and conditions under the new employer as well as the old one
- New Employer inherits employees and employee liabilities incurred by old employer on date of transfer
- Neither new nor old employer can dismiss an employee purely because of the transfer or a reason connected with the transfer
- Transferring employees retain their existing terms and conditions (which may be different from the existing staff)
Canavan Byrne will assist in carrying out a comprehensive HR due diligence. This involves reviewing the documentation and records of the transferor to assess the workforce in relation to terms and conditions of employment, benefits, litigation union recognition and engagement etc. The range of issues that need to be examined include:
- Comprehensive data on all aspects of the employee including terms and conditions, pending/potential liabilities
- Identifying harmonization issues prior to transfer
- Ensuring a cultural due diligence takes place so that an integration programme can be implemented
- Communicating with the affected staff and giving the necessary time, resources and processes to manage the transfer
The transferor and transferee must engage in a process of consultation, at least 30 days before transfer. Canavan Byrne will guide and direct this process.
- Employees must be informed 30 days prior to transfer taking place
- New employer must inform old employer if they envisage any redundancies
- If any of old employer staff are to be affected by the transfer, union representatives will be consulted
New Employer Obligations
The new employer needs to provide employees with:
- Written notification of their new employer
- Start date with new employer
- Date of continuous service (date they started with old employer)
Employee pension rights DO NOT transfer to the new employer. The new employer does not have to take on the same pension scheme. An employer may offer the employees who are transferring the option of joining the new employer’s pension scheme.
However, if the new pension scheme is of less value than the old one there is usually a compensatory payment given to the employees so that they will transfer to the new scheme.
Canavan Byrne can provide actuarial advice through a partner company in any pension related matter.
Our professional Team of HR Executives will assist with all aspects of the TUPE process.