Redundancy and Business Transfers (Inc. TUPE)
Our specialist Employment Law and HR team have guided countless businesses through complex redundancy and TUPE situations, helping to ensure that their legal obligations are met and making the process as straightforward and painless as possible.
Redundancy
Redundancy is potentially a ‘fair’ reason for dismissal but to dismiss an employee fairly your business will need to be able to demonstrate that there was a genuine redundancy situation and that you followed a fair procedure.
A genuine redundancy situation can occur when a business no longer requires employees for a specific type of work due to reduced demand or workplace closure.
A fair process includes consulting affected employees, demonstrating a fair basis for selection and considering any suitable alternative employment within your organisation.
Employment Tribunals will closely scrutinise the process by which an employee is made redundant and therefore it is vitally important to take advice upon that process. For more information on how we can help you with Redundancy, please see our Redundancy Packages page.
What is TUPE and how does it work?
‘TUPE’ is the common name used for a piece of legislation called The Transfer of Undertaking (Protection of Employment) Regulations 2006. Put simply, when TUPE applies, employees automatically transfer from one employer to another. This usually occurs when a business (or part of a business) is sold to another business or when a service contract changes hands.
For any business involved in a TUPE situation it is vital to be aware of the strict obligations that apply to both the seller and the buyer. This involves obligations to inform and consult with the representatives of the affected employees prior to the date of the transfer.
Employment Tribunal awards can be highly punitive for a failure to comply with these strict obligations and the Tribunal has the power to award up to 13 weeks’ gross pay to each affected employee.
Do redundancy terms transfer under TUPE?
Redundancy terms do transfer under TUPE, meaning that when an employee transfers to a new employer, their redundancy pay is based on their total length of service and the new employer is responsible for paying it.
How we can support you
Our experienced employment law team can guide and advise you on the entire process (including the provision of template documents) to save you time and ensure that all your legal obligations are fulfilled.
TUPE is notoriously complex, but our specialist employment solicitors can provide step by step guidance through the process, ensuring complete peace of mine. If you would like further advice, call us for a free initial consultation today.
Our expert team can advise you on any of the following issues:
