Business sale issues/TUPE

It is important as a business to be aware of the Transfer of Undertakings (Protection of Employment) Regulations 2006 ("TUPE"), which is the legal authority when all or part of your business is bought or sold, as in terms of employees the terms and conditions of those who transfer in the sale are preserved, which essentially means in almost all the cases as a new employer you cannot change the transferred employees' terms and conditions to match those of any existing employees.

Under TUPE, you are required to inform and consult the appropriate workplace representatives of those employees affected by the transfer and this is essential in order to comply and avoid any potential proceedings being brought against you.

Should your business be involved in such a transaction, it is usually the case that your business and employees may suffer from effects such as low staff morale and discontent, not just in those employees transferred but also for the employees left behind in the old business and workmates they join in the new business. Therefore it is best to be advised of the ways such a situation can be used to have a positive impact on your business and employees.