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When does TUPE apply?
TUPE regulations apply in the following circumstances for business transfers:
- An employee’s job transfer over to a new company
- Employment terms and conditions transfer to a new company
- Continuity of employment is maintained
Furthermore, TUPE regulations can also apply for service provision changes. Examples of service provision changes include:
- A service provided in-house (e.g. cleaning, workplace catering) is awarded to a contractor after the transfer. For example, if a company employs a cleaner and then after the transfer, the new employer decides to use an external cleaning company instead.
- A contract ends, and the work is transferred in-house by the former client. For example, if a company is using a digital marketing agency, and then after the transfer decides to bring all the digital marketing work in-house.
- A contract ends and is given to a new contractor after the employer transfer.
On the flip side, an employee isn’t protected under TUPE if:
- They have been made redundant.
- The business has gone or is going bankrupt.
- They work for a goods supplier for a company’s use. For example, a restaurant decides to change food suppliers after the transfer.
- They’re involved in single events or short-term work. For example, a single corporate event using a catering company.