When does TUPE apply?
TUPE applies to a relevant transfer in two circumstances:
- a business transfer – when a business, or part of one, transfers from one employer to another as a going concern
- a service provision change – this can include:
- outsourcing – where an organisation engages a contractor
- second-generation outsourcing – retendering or re-assigning a contract to another contractor
- insourcing – taking work back in-house
A transfer can fall into both categories. For example, where there is both a business transfer and a service provision change at the same time.
In transfer situations:
- the new employer is the 'transferee' - we refer to this as the 'recipient'.
- the old employer is known as the 'transferor' - we refer to this as the 'sender'
The legislation puts requirements on both the recipient employer and the sender employer throughout the transfer process.