TUPE law is meant to protect employees in the event that the business where they are employed changes ownership. The operation of the law clearly states that the employees as well as their liabilities ought to be shifted from the old employer to the new one. The laws are part of the protection of employments regulations in the United Kingdom. TUPE laws were initially passed in the year 1981 but significant amendments were made in 2006 making them the trickiest piece of legislation the UK has ever witnessed.
The law applies to different types of business transactions as long as they involve employees. The law stipulates clearly that all employers must comprehend the liabilities of employees and the possible eventualities that can trigger them.
TUPE law applies when an employer sells or purchases a business. It does not have to involve the entire business because it could be part of it. Secondly, the laws come in force when an employer decides to outsource a service to third party companies or a different contractor. The same case will apply the services are changed from one contractor to the other.
The TUPE law can only be implemented when there is an applicable transfer. In order to determine whether this has happened, there are a number of factors that the court considers. Firstly, the undertaking that is scheduled for transfer must be verified. Secondly, the court will also have to determine whether there are concrete and substantial assets to be transferred and their respective value. Thirdly, the numbers of employees that will be taken on by the new employer also play a significant role. Fourthly, the court will also consider if there is any transfer of customers in the agreement. Lastly, the time or duration which the activities of the business were suspended will also be a determinant factor.
It is advisable to seek legal advice when doing a transaction so as to know whether TUPE will affect the process or not. In essence, most of the business outsourcing in UK is affected by these laws but seeking legal advice will make matters simple.
Legally, TUPE law guarantee that if there is any undertaking taking place as far as business transactions are concerned, all the employees involved ought to be transferred to the new employer. This is a step in the right direction that will ensure there is zero loss of legal rights. In most cases, the transfer will involve the rights, liabilities, benefits and duties of the employees. Apart from the right for unfair dismissal, the employee will also transfer the right to unpaid wages, statutory rights and the personal injury claims among others.
The TUPE law is very helpful giving more benefits to the employee. Employees can now transfer legally to a different employer and still enjoy the existing terms and condition of service. In short, all their employment rights as well as the liabilities will not be affected upon the transfer of employment.