What Is TUPE Transfer?
TUPE Transfer explained, a plain-English guide for UK employers.
Short definition
The automatic transfer of employees and their terms and conditions when a business or service provision moves from one employer to another.
The legal definition of TUPE Transfer
The Transfer of Undertakings (Protection of Employment) Regulations 2006 protect employees when the business or service they work in transfers to a new employer. Affected employees automatically transfer on their existing terms and conditions. Any dismissal connected with the transfer is automatically unfair unless for an 'economic, technical or organisational' reason. Both the outgoing and incoming employer have consultation obligations.
Legal reference: TUPE Regulations 2006 (SI 2006/246)
Last reviewed 21 June 2026.
Related terms
In-depth guidance
Running a TUPE transfer without a claim
TUPE applies far more often than employers expect. It covers business sales and also service provision changes, so it catches outsourcing, insourcing and contractor changes in cleaning, catering, care, facilities and IT support.
When TUPE applies
- A business transfer: an economic entity retaining its identity moves to a new owner, for example an asset sale of a trading division.
- A service provision change: activities are outsourced to a contractor, brought back in-house, or moved from one contractor to another.
- There must be an organised grouping of employees whose principal purpose is carrying out those activities for the client.
- TUPE does not apply to a share sale, because the employer entity does not change, and it does not usually apply to a one-off supply of goods or a short-term task.
Obligations on each side
| Stage | Outgoing employer (transferor) | Incoming employer (transferee) |
|---|---|---|
| Before transfer | Provide employee liability information at least 28 days before the transfer. | Confirm any measures it plans to take so the transferor can inform and consult on them. |
| Consultation | Inform recognised representatives, or elect them where none exist, and consult on measures. | Cooperate with the process and supply accurate measures information. |
| On transfer | Employment ends only in name. Continuity, terms and liabilities pass across. | Inherits contracts, continuity of service, and most liabilities including outstanding claims. |
| After transfer | Retains liability for anything it failed to disclose or consult on. | Can only change terms for an economic, technical or organisational reason entailing changes in the workforce. |
The measures and consultation trap
Failure to inform and consult carries a protective award of up to 13 weeks' actual pay per affected employee, and both employers can be jointly liable. That is often the single largest exposure in a small transfer, because it applies per head regardless of whether anyone lost their job.
Where there is no recognised union and no existing employee forum, you must arrange an election of representatives. Employers with fewer than ten employees may consult staff directly, but the substance of the duty stays the same.
Harmonising terms after a transfer
- Map the two sets of terms and identify genuine differences in pay, hours, notice, holiday, sick pay and pensions.
- Accept that harmonisation purely because of the transfer is void, even if the employee agrees to it.
- Look for a separate, genuine ETO reason such as a restructure with real changes in numbers or functions.
- Where change is unavoidable, consult properly, document the business reason, and consider a package that leaves employees no worse off overall.
- Take advice before dismissing and re-engaging. Transfer-connected dismissals are automatically unfair without an ETO reason.
Practical tip
Start the employee liability information exercise as soon as heads of terms are agreed. Late or inaccurate data is the most common cause of a transfer date slipping and of disputes between the two employers afterwards.
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