Working closely with our Corporate, Insolvency and Property colleagues, we are often called upon to lend specialist employment assistance to the sale and acquisition of businesses and to the transfer of service contracts.
The Transfer of Undertakings (Protection of Employment) Regulations 2006 ("TUPE") have a broad application to business transfers and service provision changes and do not differentiate between large and small businesses - one employee is sufficient for the Regulations to bite. Similarly, even where a transaction is predominantly property ‘biased', if a business is being carried on in the hands of the seller, the Regulations may well have significant implications for you, as a potential buyer.
The Regulations oblige you (whether you are a seller or a buyer/ outgoing contractor or incoming contractor) to implement certain processes, in advance of the proposed business transfer or service provision change, for the protection of the employee(s) engaged in that business. The penalties for failing to follow these procedures can be substantial.
Our team is experienced in providing specialist commercial advice on the application of TUPE to your circumstances, assisting you in complying with all necessary information and consultation procedures and advising you upon the limitation of potential liability through the use of appropriate warranty and indemnity protection within the business transfer agreement.
TUPE is a highly technical area, where liabilities can be substantial and specialist employment advice is essential, at the earliest possible stage.
Our team is also on hand to advise you on the limitations that TUPE imposes upon your ability to manage an inherited workforce and how to successfully and safely implement changes following a relevant transfer.
If you are buying or selling a business, or relinquishing or adopting a contract that employs one or more people, please speak with a member of our team.
Follow us on Twitter
