TUPE regulations in mergers, acquisitions and service provision

TUPE regulations can have a huge impact on businesses that are planning to merge or acquire another business. With outsourcing on the increase, those tendering for services are also likely to find that TUPE applies to any resulting change in service provision.

TUPE is designed to protect employees and ensure that their terms and conditions are protected and maintained under their new employer.

If you are embarking on a business or service provision transfer we advise whether TUPE is likely to apply and the steps you need to take to comply with the regulations and ensure that other employment legislation requirements are met.

Who is responsible for implementing TUPE?

Your legal position will be very different depending on whether you are transferring employees to another organisation, or taking on the employees of a transferred business or service. It’s vital that you understand the regulations and follow the necessary procedures to the letter to avoid expensive legal claims.

Will TUPE affect whether the business deal can go ahead?

For the incoming employer, it’s imperative to undertake HR due diligence before a final decision is made on a purchase or bid for services. This means understanding the structure and composition of the roles and employees who are likely to transfer, with all associated costs and liabilities. Employment legislation, for example, on TUPE and redundancy may restrict what you can do … and what you can afford. So this needs to be factored into your overall strategy and post-transfer operational plan.

The impact on your employees cannot be under-estimated

The personal impact of TUPE will vary for each employee. We help you plan your employee communications and consultation to help alleviate any concerns and avoid any serious employee relations problems.

Whether or not your managers are dealing with a transfer for the first time, employees will be looking to them for answers. We support and advise your managers through every step of the process helping to ensure a smooth transition and a more positive attitude from staff towards the change.

For advice on transferring staff and what to do next contact Dianne Lambdin.