Overview

The Transfer of Undertakings (Protection of Employment) Regulations 2006 (referred to below as TUPE) is now the main piece of legislation governing the transfer of an undertaking (eg a business), or part of one, to another. The regulations are designed to protect the rights of employees in a transfer situation enabling them to enjoy the same terms and conditions, with continuity of employment, as they formerly had with their previous employer.

In what situations does TUPE apply?

• mergers and/or sales of a businesses by sale of assets
• a change of licensee or franchisee
• the gift of a business through the execution of a will
• contracting out of services
• changing contractors
• where all or part of a sole trader’s business or partnership is sold or otherwise transferred.

In what situations does TUPE NOT apply?

• transfers by share take-over
• transfers of assets only (for example, the sale of equipment alone would not be covered, but the sale of a going concern including equipment would be covered)
• transfers of a contract to provide goods or services where this does not involve the transfer of a business or part of a business
• the supply of goods for a clients use, for example, supplying food to a client to sell in its staff canteen, rather than a situation where the contractor runs the canteen for the client.
• transfers of undertakings situated outside the United Kingdom (although these may be covered by the regulations of other EEC member states).

Practical suggestions

Image by Thomas Hawk

If you work in the UK Media Industries and have a question about this or any other topic, please e-mail us at workline@freelanceadvisor.co.uk

Please note that the advice given on this website and by our Advisors is guidance only and cannot be taken as an authoritative interpretation of the law. It can also not be seen as specific advice for individual cases. Please also note that there are differences in legislation in Northern Ireland.