If you are in negotiations to buy or sell the whole or part of a business, the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) will impose duties upon you to inform and consult with employees if there is a ‘relevant transfer’.
A relevant transfer occurs where:
However it will not be a relevant transfer if:
As well as other duties not covered by this leaflet, TUPE imposes duties upon both the seller and the buyer to inform and consult employees affected by the transfer.
‘Affected employees’ include every employee who may be affected by the transfer, not just those who will actually transfer. And this includes not only the employees of the sellers business but those in the buyer’s business as well.
If the number of affected employees is small it may be most effective to inform and consult on an individual basis. However, for larger numbers you can deal with either:
Whether dealing with individual employees or representatives you must disseminate the following information:
The purpose of giving the information is so that consultation can take place with a view to seeking agreement over the arrangements for the transfer. Therefore the information must be given long enough before the transfer to allow reasonable time for consultation to take place. What is reasonable will depend on the circumstances of the transfer.
If you are the seller you must provide the buyer with the following information relating to the transferring employees:
If you are the buyer you must provide the seller with details of any changes you intend to make after the transfer that will affect the transferring employees.
This is just a very brief summary of the consultation requirements under TUPE. If you think you are entering into a relevant transfer you should seek further, more detailed advice advicefrom one of our business law solicitors, Steven, Simon, Chris or Helen on 01752 668246 or send an email by clicking here.