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TUPE

Transfer of Undertakings (Protection of Employment) Regulations

This complex piece of legislation generally applies in any circumstances where a business is sold, bought or merged with another as a going concern (i.e. not just selling the fixtures and fittings). It also often applies when a contract is retendered, or when a company decides to contract out a particular function or bring one back in-house. This piece of legislation imposes very specific obligations on both the transferor and the transferee companies, and serves to protect the affected employees from suffering any detriment or being dismissed as a result of the transfer. It can therefore be quite restrictive for companies in terms of dictating what they can and can't safely do before, during and after a transfer.

 

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From the J-Blog

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