Transfer of Undertakings

The Transfer of Undertakings (Protection of Employment) Regulations (TUPE) protects employees' terms and conditions of employment when a business is transferred from one owner to another. Employees of the previous owner when the business changes hands automatically become employees of the new employer on the same terms and conditions. It's as if their employment contracts had originally been made with the new employer. Their continuity of service and any other rights are all preserved. Both old and new employers are required to inform and consult employees affected directly or indirectly by the transfer.

Source: ACAS
Related Links:
Transfer of Undertakings factsheet
A factsheet re. the issues of transfers of undertakings.
Business transfer of undertakings
A resource from DirectGov that explains several areas of the issues.
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