The law protects employees of businesses which are bought or sold, so advice in this area is crucial. Our employment and corporate teams will work with you to help you manage the legal aspects of your deal.
When buying or selling a business, the TUPE legislation includes the following key concepts:
The automatic transfer principle; employees transfer to the buyer who will inherit all rights, liabilities and obligations in relation to them
Protection against dismissal in connection with a TUPE transfer
The obligation to ‘inform and consult’ with representatives of those employees who are affected
TUPE also applies to the sale of part of a business, as well as where a business engages a contractor to do work on its behalf. It even applies where a contract is reassigned or where the work is brought back ‘in-house’ (known as a ‘service provision change’).
The cost of getting the law wrong can have a crippling effect on the buyer and seller, because there will often be multiple claims from a number of employees who may have the support of trade unions and other representative bodies.
We have the experience and expertise to provide you with the best possible advice on a practical level.