When you buy or sell a business or when a contract is in-sourced, outsourced or put up for tender, certain staff may automatically transfer with their work on their existing terms and conditions. The transferring of staff from one organisation to another is both challenging and complex for all parties, especially as it is not always clear whether the rules set by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) apply, leading to disputes over whether staff transfer or remain with the existing employer. The existing employer will often prefer they transfer to avoid potential redundancy costs, whereas the potential new employee will often prefer they do not transfer so that they are not obliged to honour the contract terms which may be more generous than those of their existing workforce or that they would offer to new recruits. TUPE is a complex piece of legislation and often an area which employers neglect, particularly when bidding for contracts before they commit to the contract.
TUPE provides your employees with the right to be informed and consulted in relation to the transfer of their employment, it preserves their continuity of service, as well as giving them protection from dismissal and prohibiting or rendering void many changes to certain terms of employment.
We are able to assist in guiding you through this process at any stage, but the application of TUPE is best considered early before the bid or tender stage, before committing, for example, to a new contract in a tender exercise without proper consideration of the transferring staff costs you may be assuming.