The TUPE Regulations—Transfer of Undertakings (Protection of Employment) Regulations 2006—are UK laws designed to protect employees’ rights when the business they work for changes ownership or when a service provision changes (e.g. outsourcing, insourcing, or changing service providers). These TUPE letters for both transferor and transferee will help ensure legal compliance, transparency and the protection of employment rights during a TUPE transfer. Under TUPE employers must inform and, where necessary, consult with affected employees or their representatives. Failure to send proper TUPE letters (as part of this duty) can result in Employment Tribunal claims and/or compensation of up to 13 weeks’ gross pay per employee.
When does TUPE apply?
TUPE applies in two main situations:
1. Business transfers where a business or part of it is sold or transferred to a new employer or
2. Service provision changes where a contract to provide services changes such as outsourcing, a change of contractor or insourcing.
TUPE does not apply to asset sales (no employees) or share sales.
What does TUPE provide for?
Protection of employment contracts as employees automatically transfer to the new employer, maintaining continuous service, pay, holiday entitlement and other particulars of employment: Prevention of unfair dismissal where employees cannot be dismissed just because of the transfer and are only fair if there is an economic, technical or organisational reason.
Information and consultation is required. The range of letter templates listed below include versions for TUPE Letter Informing Employees of Business Transfer – Sale and TUPE Letter Informing Employees Of Business Transfer – Contracting Out. Additional TUPE letters provide for employee representatives.
Transferors must provide Employee Liability Information giving the new employer key details and transferring employees (at least 28 days before the transfer). The TUPE Letter Notifying Transferee of Employee Liability Information should be used and is supported by additional templates to assist with the administration of the TUPE process.
Please view, click on or download from the full list of available TUPE Letters below:
TUPE Letters is part of Employment. Just £38.50 + VAT provides unlimited downloads from Employment for 1 year.
Frequently Asked Questions
My business is being sold as a going concern. Which TUPE letters do I need to send to employees? +
Because TUPE applies when you sell a business as a going concern, you must inform affected employees (or their representatives) about the transfer. Start with the TUPE Letter Informing Employees of Business Transfer (Sale), setting out the fact, proposed date and reason for the transfer. Once the new employer is confirmed, send the Letter to Employees Advising Change of Employer Following TUPE Transfer. If no trade union is recognised, also send the Letter to Affected Employees for Electing Employee Representatives in a TUPE Transfer to set up the election of representatives before consultation begins.
We are changing our cleaning or IT contractor and staff are affected. Do I need to send TUPE letters for a service provision change? +
Yes, provided there is an organised grouping of employees principally dedicated to the service. Changing a service provider (outsourcing, insourcing or re-tendering) is a service provision change under TUPE, with the same inform-and-consult obligations as a business sale. TUPE does not apply where the activities are not fundamentally the same, or where the work concerns a single event or short-term task. Use the TUPE Letter Informing Employees of Business Transfer (Contracting Out) to tell affected employees, and the Letter Inviting Employee Representatives or Affected Employees to a TUPE Consultation Meeting to begin consultation.
What happens if I fail to inform or consult employees properly before a TUPE transfer? +
Failing to comply with the TUPE duty to inform and consult can lead to an Employment Tribunal claim by affected employees or their representatives. A tribunal may award up to 13 weeks' uncapped gross pay per affected employee, set at whatever is just and equitable given the seriousness of the failure, with the transferor and transferee jointly and severally liable. Using the correct Simply-Docs TUPE letter templates at each stage creates a clear record that the duty was met.
As the incoming employer, what employee information must the outgoing employer give me before the transfer? +
The outgoing employer (transferor) must give you Employee Liability Information (ELI) at least 28 days before the transfer date, covering the identity and age of transferring employees, their written employment particulars, disciplinary and grievance records from the preceding two years and any actual or anticipated tribunal claims. Use the Simply-Docs TUPE Letter Notifying Transferee of Employee Liability Information, supported by the TUPE Employee Liability Information Form and the TUPE Letter Notifying Transferee of Updated Employee Liability Information for changes. If they fail to provide ELI, you can bring a tribunal claim, with a minimum award of £500 per employee.
As the new employer, do I need to tell the outgoing employer what changes I plan to make after the transfer? +
Yes. Under TUPE you must notify the outgoing employer of any measures you envisage taking in relation to the transferring employees after the transfer, so the outgoing employer can include it when consulting employee representatives. Use the Simply-Docs Letter to be Sent by Transferee to Transferor Informing it of Any Measures Following a TUPE Transfer. If you fail to provide it, the outgoing employer may have a defence to a failure-to-consult claim and a tribunal can transfer liability to you.
Does TUPE apply if we are selling company shares rather than the business itself? +
No. A share sale does not trigger TUPE. In a share sale the legal employer (the company) remains the same; only its ownership changes. Employees stay on the same contracts with the same employer and there is no transfer of an undertaking. TUPE applies when the identity of the employer changes, which happens in an asset sale or a service provision change. If you are conducting a business asset sale, the TUPE Letter Informing Employees of Business Transfer (Sale) and the other templates in this Simply-Docs sub-folder will be needed.
