The TUPE Letter Informing Employees of Business Transfer – Sale can be applied to the following situations where:
• all or part of a sole trader's business or partnership is sold or otherwise transferred;
• a company, or part of it, is bought or acquired by another, provided this is done by the second company buying or acquiring the assets and then running the business and not acquiring the shares only; and
• where two companies cease to exist and combine to form a third. When there is a TUPE transfer on account of a ‘service provision change’ i.e. when a contract is reassigned, see the separate TUPE Letter Informing Employees of Business Transfer - Contracting Out.
The 2006 TUPE Regulations preserve employees' terms and conditions when a business or undertaking, or part of one, is transferred to a new employer. Any provision of any agreement (whether a contract of employment or not) is void so far as it would exclude or limit the rights granted under the Regulations.
Employees employed by the previous employer when the undertaking changes hands automatically become employees of the new employer on the same terms and conditions. It is as if their contracts of employment had originally been made with the new employer. Thus employees' continuity of employment is preserved, as are their Terms and Conditions of Employment under their Contracts of Employment (except for certain occupational pension rights).
Representatives of employees affected have a right to be informed about the transfer. This includes information about the use of agency workers, including the total number of agency workers engaged by the employer, the business in which they are utilised, and the type of work they are contracted to undertake. They must also be consulted about any measures which the old or new employer envisages taking concerning affected employees.
This letter should be used when the employer does not envisage taking any measures which will affect its employees. When measures are envisaged and there is a requirement to consult, please see the separate letters regarding consulting with employee representatives elsewhere in this suite of documents.