Redundancy and TUPE Transfers: Key Rules and Employer Responsibilities
- Employment Law
- 23rd Sep 2025
What is TUPE? The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) protect employees when a business or service is transferred. TUPE applies to business sales, outsourcing, insourcing, and similar changes. Employees automatically transfer to the new employer with their terms and continuity preserved. TUPE and Redundancy Dismissals due to the transfer itself are […]
By Amy Jefferson
mlplaw
What is TUPE?
The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) protect employees when a business or service is transferred. TUPE applies to business sales, outsourcing, insourcing, and similar changes.
Employees automatically transfer to the new employer with their terms and continuity preserved.
TUPE and Redundancy
Dismissals due to the transfer itself are automatically unfair. However, redundancies may be lawful if they are for an “economic, technical, or organisational” reason involving changes in the workforce.
Examples include cost-saving measures that reduce staff numbers or restructuring that alters roles.
Employers must still consult properly with affected staff and apply fair selection criteria.
Consultation Duties
TUPE requires employers to inform and consult representatives about the transfer and its impact. If redundancies are also planned, collective and individual consultation rules under redundancy law apply.
Failure to consult can result in compensation of up to 13 weeks’ gross pay per affected employee.
Conclusion
TUPE does not prevent redundancies but places strict limits on when they can happen. Employers must ensure any dismissals are linked to genuine organisational reasons and that consultation duties are followed.
About the expert
Amy Jefferson
Paralegal - Employment Law
Following the completion of her undergraduate degree in Law, Amy started her legal career at a trade union law firm based in Sheffield in September 2022.
Amy’s interest in legal practice began following a series of trips to the Manchester Crown Court public gallery with her Grandad. What started as a few day trips sparked a real interest in legal practice and a few years later she undertook work experience with a high street firm in Bramhall specialising in employment law.
This area was further explored during university by studying an elective module in employment law and completing a part time work placement in employment law alongside studies in her final year. After university, looking to explore her options she began working in personal injury. However, quickly missing the pace and range of employment law, she returned to the area and has found the work to be meaningful and rewarding.
In her spare time, Amy likes to attend live music events and go for walks in the Peak District.
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