TUPE - an Overview

Written by Andrew Johnson, Founder and CEO HRGuide - updated Mon 8th Dec 2025

The Transfer of Undertakings (Protection of Employment) Regulations (TUPE) protect employees' rights when a business or service is transferred to a new employer.

The Transfer of Undertakings (Protection of Employment) Regulations 2006 are designed to protect employees' rights when their employer changes due to a business transfer or service provision change. This means that when a business is sold or a service is outsourced, employees are entitled to retain their existing terms and conditions of employment, ensuring continuity of employment. 

TUPE applies in two main scenarios. The first is when a business transfers ownership. The identity of the employer must change for TUPE to apply. The second is when a service provision changes. This happens when a service is transferred to a new provider, such as when a company takes over a contract for services like cleaning or catering. 

Under TUPE employees have the following protections:

  • Automatic Transfer: Employees assigned to the part of the business being transferred automatically transfer to the new employer, retaining their rights and continuity of employment. 
  • Protection Against Dismissal: Employees cannot be dismissed solely because of the transfer; such dismissals are considered automatically unfair unless there is an economic, technical, or organizational reason. 
  • Preservation of Terms and Conditions: Employees maintain their existing terms and conditions, including pay, holiday entitlement, and other benefits. Learn more about Employment Contracts.

If you are buying a new business or service you must inform and consult with employees about the transfer, including any potential impacts on their employment. Failure to comply with these obligations can lead to legal challenges and financial penalties. 

Understanding TUPE regulations is crucial for both employers and employees involved in business transfers or service provision changes. These regulations ensure that employees are protected during transitions, maintaining their rights and employment continuity.