When a company is bought or taken over and staff transfer to the new employer, the TUPE Regulations should apply.
These regulations serve to protect employment rights. Generally speaking there should be minimal disruption to an employee’s contract and working life when their employment is transferred to a new company. This is however a particularly complex area of law that is constantly being tested in the appeal courts.
The TUPE Regulations also apply to outsourcing arrangements. This occurs when the service provided in-house is transferred to a contractor, given to a new contractor, or when work is transferred back in house.
There are strict rules concerning consultation of employees prior to a transfer. In our experience this can often be overlooked by an employer.
Compensation can be awarded accordingly. There is a maximum of 13 weeks gross pay where employees have not been adequately consulted with prior to the transfer of their employment.
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