1. Understanding
TUPE
Sheila Aly

2. The Basics

2006 Regulations are the most relevant source for
the law

Defined as a transfer of an economic entity that
retains its identity

Does not apply to share sales

Any attempt to contract out of it is void

3. Factors to Consider

The type of undertaking being transferred

whether any tangible assets are being transferred

whether any intangible assets are transferred

whether the majority of the employees are taken on

whether any customers are transferred

the degree of similarity between the activities
carried on before and after the transfer;

the period for which the activities were suspended

4. 2006 Legislation Introduces...

Clarity as to when TUPE applies

Clarification of the effect of legislation
to transfer related dismissals

Notification Requirements

greater flexibility for insolvency cases

5. Duty to Provide Information

Age and identity of employee

Contract of Employment

Disciplinary Records

Grievance Records

Tribunal Claims

Collective Agreements

Fine of up to £5000 for non-disclosure

6. Which Other Information

Policy Reason:

‘equivalent contractual safeguards’

No Further legal guidance on what you
can and cannot ask for

No legal guidance as to provision of the
information

7. Timeframes
“Employee liability information shall contain
information as at a specified date not more
than fourteen days before the date on which
the information is notified to the transferee.”
“long enough before a relevant transfer to
enable the employer of any affected
employees to consult the appropriate
representatives of any affected employees...”
Cable Realisations Ltd v GMB Northern, EAT

8. Employee's Existing Benefits

They will only transfer if it is an existing
contractual benefit

Are they deemed to be part of the
contract of employment?

Is it an express or implied term?

If implied, is it reasonable to imply it?

9. New Company Benefits

Basic ethos is to preserve their contract

Beyond that, you can be as generous
as you like!

Equal pay
- Gutridge and ors v Sodexo and anor, CA
-Skills Development Scotland Co Ltd v
Buchanan and anor, EAT

10. Pensions (Occupational
Schemes)

e.g. Final Salary, Career Average or
Money Purchase

You have to provide a form of pension,
but not necessarily the same one

11. Pensions (Options)
Final Salary or Career Average

the benefits are equivalent to the level of the
Reference Scheme Test

the value of benefits provided are at least 6% of
pensionable pay for each year of employment

employer matches employee contributions of up
to 6% of basic pay

12. Pensions (Options)

money purchase scheme in which the employer
matches employee contributions of up to 6% of
basic pay

Stakeholder Scheme in which the employer
matches employee contributions of up to 6% of
basic pay

Doesn't need to match other employees

Doesn't apply to people who have turned it down

13. Pensions (Non Occupational)

The obligation only transfers if the
previous employer had a contractual
obligation to contribute

The regulations do not otherwise apply
to you

14. Questions