Business Transfers & Service Provision Changes: TUPE Services for Employers

Practical employment law support to help employers manage business transfers, acquisitions and service changes smoothly and compliantly.

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Business sales, acquisitions, mergers, outsourcing arrangements and changes of service provider can have significant implications for employees. Where the Transfer of Undertakings (Protection of Employment) Regulations 2006, commonly known as TUPE, apply, employees will normally transfer to the new employer with their existing employment terms and continuity of service protected.

DTM Legal advises employers acquiring or selling businesses, transferring services, bringing outsourced functions in-house and participating in tendering exercises. We help transferors and transferees assess whether TUPE applies, understand the potential employment liabilities and plan an effective information and consultation process.

Our Employment & HR solicitors work closely with HR teams, business owners and DTM Legal’s Corporate & Commercial team to align employment advice with the wider transaction. From early due diligence and contractual protections through to consultation, workforce restructuring and post-transfer integration, we provide practical support throughout the process.

Business Transfers & Service Provision Changes Legal Services

We provide advice and support across all stages of business transfers and service provision changes, including:

  • Advising whether TUPE is likely to apply
  • Supporting business sales, acquisitions and mergers
  • Advising on outsourcing, insourcing and changes of service provider
  • Identifying which employees are likely to transfer
  • Employment due diligence
  • Reviewing employee contracts, policies and liabilities
  • Preparing and reviewing employee liability information
  • Advising on the disclosure of employment information
  • Drafting TUPE provisions, warranties and indemnities
  • Planning information and consultation processes
  • Preparing employee and representative communications
  • Supporting the election of employee representatives
  • Advising on proposed measures affecting employees
  • Managing employees who object to transferring
  • Reviewing proposed changes to employment terms
  • Supporting the integration of transferring employees
  • Advising on pensions, benefits and collective arrangements
  • Managing grievances and employee relations issues connected with a transfer
  • Defending TUPE-related Employment Tribunal claims

Why Instruct DTM Legal?

TUPE projects involve both legal compliance and careful workforce management. Our Employment & HR team takes the time to understand the proposed transaction, the employees involved and any operational changes being considered before helping you establish a clear and realistic process.

We provide practical advice on the responsibilities of both the outgoing and incoming employer. This includes identifying potential liabilities, coordinating the exchange of employee information and helping employers meet their obligations to inform and, where measures are proposed, consult affected employees or their representatives.

By working alongside our Corporate & Commercial solicitors and your wider professional advisory team, we can ensure that employment risks are properly reflected in the transaction documents and commercial negotiations. Our focus is on helping the transfer proceed efficiently while reducing disruption and the risk of avoidable claims.

We provide:

  • Practical and commercially focused TUPE advice
  • Support for buyers, sellers and service providers
  • Early identification of employment risks and liabilities
  • Clear guidance on information and consultation obligations
  • Coordination with corporate, commercial and financial advisers
  • Strategic advice on restructuring and post-transfer integration
  • Responsive support throughout the transaction

Get in Touch

Whether you are buying or selling a business, outsourcing a service or taking over an existing contract, our Employment & HR team can help you manage the employment implications and plan an effective TUPE process.

To discuss your requirements, contact us by emailing employment@dtmlegal.com or calling 01244 354 800 / 0151 321 0000.

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Key Considerations for Employers Managing a Business Transfer or TUPE Process

Considering the employment implications early can help employers plan an effective transfer, allocate risk appropriately and avoid delays later in the transaction. Read our Key Considerations guide to understand some of the points a solicitor may wish to discuss when responding to your enquiry. It can help you prepare the relevant information and make your initial conversation more productive.

View Key Considerations

Frequently Asked Questions

Commonly asked questions regarding Business Transfers, Acquisitions, Sales and TUPE legal considerations.

TUPE protects employees when the business or service in which they work transfers to another employer. It can apply to the sale of a business and to service provision changes such as outsourcing, bringing a service back in-house or appointing a new contractor.

Whether TUPE applies will depend on the facts of the arrangement. Employers should assess the position early rather than assuming that every business transaction or change of contractor will automatically be covered.

Employees assigned to the transferring business or service will normally transfer automatically to the incoming employer. Their existing employment contracts, continuity of service and most employment rights transfer with them.

The incoming employer may also inherit liabilities connected with the employment relationship, including certain claims arising from events before the transfer. Employment due diligence and suitable contractual protections are therefore important.

Employers must inform the appropriate representatives of affected employees about the transfer. Depending on the circumstances, these may be recognised trade union representatives, existing employee representatives, newly elected representatives or the employees directly.

Consultation is required where the employer proposes measures that will affect employees. It must be genuine, with representatives given an opportunity to comment and the employer considering their views before final decisions are made.

An incoming employer cannot normally change an employee’s terms where the sole or principal reason is the transfer itself. This means employers should be cautious about seeking to harmonise the terms of transferred employees with those of the existing workforce.

Some changes may be possible where there is an economic, technical or organisational reason involving changes in the workforce or workplace and the employee agrees. The proposed reason and process should be reviewed carefully before changes are introduced.

Redundancies may be possible where there is a genuine economic, technical or organisational reason involving changes in the workforce. The employer must still follow an appropriate redundancy process and comply with individual and, where applicable, collective consultation requirements.

Employees should not be selected for redundancy simply because they are transferring under TUPE. The timing, business rationale and selection process should be considered carefully, particularly where restructuring is closely connected with the transfer.

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