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Employees’ Rights – Transferring a Business

22 March 2006

If you have ever been involved with sales of a business you might know that employees’ rights are protected under regulations known as TUPE. The Government has just published new regulations in this area which come into force on 6th April 2006.

Raj Dhokia, Commercial Partner at Harris Cartier Solicitors says:

"The regulations aim to clear up some grey areas and make things more certain this field. The Transfer of Undertakings (Protection of Employment) Regulations 1981 are amended by the new regulations and the changes:

extend TUPE to cover additional areas where services are provided but not where they are just provided on a one-off basis;
require the old employer to provide the new employer with details of any employment liabilities - if this is not done compensation can be awarded against the old employer;
introduce new flexibility where there is a transfer of insolvent businesses;
clarify the circumstances in which employers and employees can change the terms and conditions of employment for 'economic, technical or organisational' reasons; and
clarify the circumstances under which it is unfair for employers to dismiss employees for reasons connected with a relevant transfer."

Call Raj Dhokia on 01753 734891, or send him an email for further information or help with employment issues when you sell or buy a business.