Finance Editor, Kael Tripton Ltd - LBS MBA - Verified against FCA Handbook: 14 June 2026
Quick answer
TUPE 2006 protects employees when a business or service transfers to a new employer. Your pay, hours, holidays and contractual benefits transfer automatically. Dismissal connected to a TUPE transfer is automatically unfair unless the employer has a genuine ETO reason. Both employers must inform and consult employee representatives before the transfer.
What Are TUPE Regulations and When Do They Apply?
Direct answer
What rights does TUPE give me when my employer changes?
TUPE 2006 (legislation.gov.uk/uksi/2006/246) transfers you to the new employer on exactly the same pay, hours, holidays and benefits. The new employer cannot change your terms because of the transfer. Dismissal connected to the transfer is automatically unfair. Both employers must inform and consult employee representatives before the transfer date. If these rights are breached, you can make an Employment Tribunal claim.
FCA Handbook - TUPE 2006 Regulation 4(1) - Verbatim Rule Text Source: handbook.fca.org.uk
Except where the regulations otherwise provide, the contract of employment of any employee of the transferor who is assigned to the organised grouping of resources or employees that is subject to the relevant transfer shall have effect after the transfer as if originally made between the person so employed and the transferee.
Confirm TUPE applies to your transfer
Check whether it is a business transfer (asset sale, outsourcing) or a service provision change. TUPE does not apply to share sales.
Request written confirmation of your terms
Ask the new employer to confirm in writing that your existing terms and conditions will be preserved. This is a TUPE right, not a request.
Check your pension rights
For defined benefit schemes, the new employer must provide broadly comparable pension provision. Check what is being offered and compare.
Participate in the information and consultation process
Ensure employee representatives have been informed and consulted. If they have not, this is a breach of TUPE Regulation 13 and you can make a Tribunal claim.
Seek legal advice if dismissed
Dismissal connected to a TUPE transfer is automatically unfair. Contact ACAS (acas.org.uk) or an employment solicitor immediately.
| Scenario | Does TUPE apply? | Key protection |
|---|---|---|
| Business sold as asset purchase | Yes | All employees transfer on same terms |
| Company sold as share sale | No | Company continues, no TUPE trigger |
| Outsourcing of a service | Yes | Service provision change -- employees transfer |
| Re-tendering of a contract | Yes | Service provision change -- employees transfer |
| Bringing a service in-house (insourcing) | Yes | Service provision change -- employees transfer |
| Redundancy after TUPE with ETO reason | Potentially fair | Must be genuine ETO reason, not pretextual |
Related KT guides
Frequently Asked Questions
What are TUPE Regulations?
TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246). TUPE protects employees' rights when a business or part of a business is transferred to a new employer, or when a service changes hands (such as an outsourcing or re-tendering). When TUPE applies, employees transfer automatically to the new employer on their existing terms and conditions. Dismissal connected to the TUPE transfer is automatically unfair.
Does TUPE apply to my situation?
TUPE applies in two situations. First, a business transfer: when an economic entity that retains its identity is transferred to a new owner -- this includes company sales (asset purchases), mergers where one entity absorbs another, and outsourcing of business functions. Second, a service provision change: when a client reassigns a contract from one contractor to another (outsourcing, re-tendering, or bringing a service back in-house). TUPE does not apply to share sales (where the company itself is sold, not its assets), one-off tasks, or service contracts primarily involving the supply of goods.
What rights do I have under TUPE when my employment transfers?
Under TUPE, transferring employees retain: the same pay and salary, the same working hours, the same holiday entitlement, the same contractual benefits (company car, private healthcare, bonus schemes), the same length of service for redundancy purposes, and the same pension rights for defined benefit schemes (where the new employer must provide broadly comparable pension provision). The new employer cannot unilaterally change these terms and conditions because of the TUPE transfer.
Can I be made redundant under TUPE?
Dismissal because of a TUPE transfer is automatically unfair under Regulation 7 of TUPE 2006. However, if there is an economic, technical or organisational (ETO) reason entailing changes in the workforce, the dismissal may be fair. An ETO reason might include genuine redundancy arising from a restructure that would have happened regardless of the transfer, or a change in the location of work. The burden of proving an ETO reason lies with the employer.
What must employers tell employees about a TUPE transfer?
Under TUPE Regulation 13, both the outgoing employer (transferor) and the incoming employer (transferee) must inform and consult employee representatives (trade union representatives or elected employee representatives) about the transfer. The information must include: the fact of the transfer and its proposed date, the reasons for the transfer, the legal, economic and social implications for employees, and any measures the new employer envisages taking in relation to employees. Consultation must be meaningful and in good time before the transfer.
Primary sources
Kael Tripton Ltd is registered with the Information Commissioner's Office under registration number ZC135439.
