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Takeovers, mergers and TUPE

The sale or merger of a business involves many considerations and given the potential impact on your workforce, it is critical that you are aware of the employment rights of those involved.

Many business sales or mergers will be caught by the provisions of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), which protect the rights of employees affected by the transaction. 

 

However, its scope can also extend to outsourcing exercises and we know that determining whether TUPE applies or not can be complex.  In seeking advice from us, you will benefit from our experience of advising on TUPE transfers and supporting our Corporate colleagues on a wide-range of transactions and so be best placed to know and understand your obligations from the outset.

Companies may face difficult and costly claims when they fail to consult or follow the right procedures which result in dismissals or changes in terms and conditions. We can help you through this process to minimise these risks.

It’s easy to think only about the transferring employees in this situation but we work with our clients to ensure that your existing workforce are kept informed and engaged through any change as well so that you can be in a position, once the transaction completes, to make a successful transition as a unified business.

 

Recent examples of work include:

  • Advising on TUPE transfer of staff from 15 leisure centres to a new provider;
  • Providing hands on help with consultation for a client selling their family business;
  • Advising on how best to protect a business when undertaking a change in company set up following extensive investment;
  • Advice on employment aspects and costs to consider a tender for new services to be provided to a local authority;
  • Providing advice in relation to a merger of three charities via a TUPE transfer
  • Advising on the purchase of a garden centre business from a national chain, involving detailed due diligence and advising on TUPE obligations, in particular in respect of a potential change of terms and conditions of employment for staff following transfer
  • Defending a company client which had 14 employee claims following an alleged TUPE transfer.
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