Reviewed by Elizabeth Rebecca Cavendish · Updated
Glossary

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.

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

StageOutgoing employer (transferor)Incoming employer (transferee)
Before transferProvide 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.
ConsultationInform recognised representatives, or elect them where none exist, and consult on measures.Cooperate with the process and supply accurate measures information.
On transferEmployment ends only in name. Continuity, terms and liabilities pass across.Inherits contracts, continuity of service, and most liabilities including outstanding claims.
After transferRetains 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

  1. Map the two sets of terms and identify genuine differences in pay, hours, notice, holiday, sick pay and pensions.
  2. Accept that harmonisation purely because of the transfer is void, even if the employee agrees to it.
  3. Look for a separate, genuine ETO reason such as a restructure with real changes in numbers or functions.
  4. Where change is unavoidable, consult properly, document the business reason, and consider a package that leaves employees no worse off overall.
  5. 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.

Trusted & accredited

Accreditations & memberships

Our sponsors & senior advisors hold active membership with the UK's leading professional bodies.

  • CIPD Logo
    CIPD
  • Institute of Directors (IoD) Logo
    Institute of Directors
  • British Safety Council Logo
    British Safety Council
  • ISO 9001 Quality Management Logo
    ISO 9001
  • ISO 27001 Information Security Logo
    ISO 27001
  • Cyber Essentials Certified Logo
    Cyber Essentials
  • Investors in People Gold Logo
    Investors in People, Gold
  • RoSPA Member Logo
    RoSPA Member
  • Carbon Saver Certified Logo
    Carbon Saver Certified
Frequently asked

Tupe Transfer FAQs

Everything you need to know, answered in full, no clicks required.