Transfer of Undertakings London

When a business changes hands in one of several scenarios, it is called a Transfer of Undertakings and can have serious repercussions for employees.

It could be that the business is totally or partly transferred to new owners or that there is a merger. Another possibility is if the company stays the same but new service providers are used, or the present providers are changed.

Under Transfer of Undertaking protocol an employee automatically becomes an employee of any new company that takes over. They will retain their service history, and any terms and conditions that applied before should be considered. They are protected either side of the transfer from redundancy, if it can be directly attributed to the changeover. Strong justifiable reasons for sacking whether they are economical, technical or organisational, need to be produced by the new owners.

It may be that the transferred employee will find themselves at odds with their new colleague’s terms of service. TUPE protects against any harmonisation, if the only reason for change was the transfer.

  • The new employer must consult with the workforce through an agreed representative; this could be a trade Union or an elected spokesman.
  • They must give details of when the transfer is to take place and any legal or social ramifications, such as change of location.
  • The old employer must pass on information to the new owners concerning an employee’s history with the firm. This may include any disciplinary measures taken in the past or any grievance claim the person may have made.

If you are affected by Transfer of Undertakings, please contact our professional solicitors or you can use our free chat feature.

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