What is a TUPE transfer?

TUPE (Transfer of Undertakings Protection of Employment) applies when a business or service transfers to a new employer. It preserves employees terms and conditions, transfers continuous service, and makes dismissal solely because of the transfer automatically unfair. Both business sales and outsourcing service changes can be TUPE transfers.

Can my employer change my terms after TUPE?

Not solely because of the transfer. Changes made for a reason connected to the transfer are void unless the reason is an ETO reason entailing workforce changes. Beneficial changes that employees agree to are lawful. Downgrading terms post-transfer is one of the most common TUPE breaches.

What are ETO reasons?

Economic, technical or organisational reasons entailing changes in the workforce. Genuine redundancy from cost or structural reasons is usually ETO. Harmonising pay downwards is not. ETO dismissals must follow a fair procedure with consultation; without ETO, dismissal on transfer is automatically unfair.

Do I have to accept a TUPE transfer?

You can object, which ends your employment on the transfer date. Objection forfeits continuing rights against the new employer, notice pay and redundancy pay. It is rarely used except where the new employer is fundamentally unacceptable. Take advice before objecting.

What is the protective award for failure to consult on TUPE?

Up to 13 weeks gross pay per affected employee, awarded by the employment tribunal. Awards apply where the employer failed to inform and consult representatives properly. Both the outgoing and incoming employer can be liable; typically the incoming employer pays.

TUPE Transfer Rules (UK 2026): Rights, Consultation, Dismissal

When TUPE applies

TUPE covers two types of transfer:

Business transfers. The sale or transfer of a business (or part of one) as a going concern to a new employer.
Service provision changes. Contracting out, insourcing or a change of contractor providing a defined service.

Not every commercial deal is a TUPE transfer. Share sales normally do not trigger TUPE (the employer entity does not change). Reorganisations within a single legal entity do not. Where the identity of the employer changes and there is an identifiable economic entity retaining its identity, TUPE applies.

Preserved terms and conditions

On a TUPE transfer, the new employer inherits:

All employment contracts and their terms - pay, notice, holidays, bonuses, working patterns.
Continuous service dates.
Liability for pre-transfer breaches (unfair dismissal, discrimination, wage claims).
Trade union recognition and collective agreements.

The new employer cannot lawfully change terms and conditions solely because of the transfer. Post-transfer harmonisation is one of the most litigated aspects of TUPE - see the harmonisation section below.

Automatic unfair dismissal

Dismissal is automatically unfair if the sole or principal reason is the transfer itself. This is the strongest protection TUPE offers. The exception is dismissal for an ETO reason (economic, technical or organisational reason entailing changes in the workforce). ETO dismissals are lawful only if:

The reason is genuinely economic, technical or organisational.
It entails changes in the workforce (usually meaning changes in numbers or functions of employees).
The employer follows a fair procedure with proper consultation.

Harmonising pay downwards is not an ETO reason. Redundancy following genuine cost reductions or restructuring is. For the general framework see unfair dismissal UK and redundancy rights UK.

Consultation duties

Both the outgoing (transferor) and incoming (transferee) employer must inform and consult with employee representatives before the transfer. The information must include:

The fact of the transfer, when it will happen and why.
The legal, economic and social implications for affected employees.
Any measures the employer envisages taking in relation to the employees.
Any measures the transferee employer envisages taking.

Where there is no recognised trade union, elected employee representatives must be chosen for the consultation. Failure to inform and consult attracts a protective award of up to 13 weeks pay per affected employee.

Harmonisation - the biggest post-transfer risk

New employers often want to bring transferred staff onto their own terms and conditions. TUPE makes this difficult:

Changes made solely because of the transfer are void.
Changes made for a reason connected to the transfer are void unless the reason is ETO and entails workforce changes.
Beneficial changes (agreed with employees, genuinely improving terms) can be made.
Changes after a substantial gap post-transfer, unconnected to the transfer, are potentially lawful under normal contract-variation rules.

Employers who impose downgraded terms on transferred staff face constructive dismissal claims from anyone who resigns in response. See constructive dismissal UK.

Pensions

Occupational pension rights (final salary and career average) do not transfer under TUPE, but the new employer must provide a minimum standard of alternative pension provision. Personal pension arrangements and stakeholder-style contribution schemes do transfer. Public-sector transfers usually preserve broadly comparable pension arrangements under the Cabinet Office Fair Deal policy.

Right to object

Employees can object to a TUPE transfer. Objection ends the employment on the transfer date without any continuing rights against the new employer. It is not a resignation for statutory purposes (no notice pay), and it is not a dismissal (no redundancy pay). Objection is rarely used because it forfeits protections; it applies mainly where the new employer is unacceptable to the employee for personal or safety reasons.

Remedies for TUPE breaches

Failure to inform and consult: up to 13 weeks pay per affected employee (protective award).
Unfair dismissal on transfer: standard unfair dismissal remedies (basic award, compensatory award, capped at 52 weeks or the current statutory maximum).
Contract breach through unlawful variation: damages for lost pay, benefits or working conditions.
Constructive dismissal following unlawful variation: unfair dismissal remedies plus notice pay.

Claims are brought in the employment tribunal, typically within three months of the breach. See employment tribunal UK for the framework and the unfair dismissal compensation table.

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Related guides

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Frequently asked questions

What is a TUPE transfer?: TUPE (Transfer of Undertakings Protection of Employment) applies when a business or service transfers to a new employer. It preserves employees terms and conditions, transfers continuous service, and makes dismissal solely because of the transfer automatically unfair. Both business sales and outsourcing service changes can be TUPE transfers.
Can my employer change my terms after TUPE?: Not solely because of the transfer. Changes made for a reason connected to the transfer are void unless the reason is an ETO reason entailing workforce changes. Beneficial changes that employees agree to are lawful. Downgrading terms post-transfer is one of the most common TUPE breaches.
What are ETO reasons?: Economic, technical or organisational reasons entailing changes in the workforce. Genuine redundancy from cost or structural reasons is usually ETO. Harmonising pay downwards is not. ETO dismissals must follow a fair procedure with consultation; without ETO, dismissal on transfer is automatically unfair.
Do I have to accept a TUPE transfer?: You can object, which ends your employment on the transfer date. Objection forfeits continuing rights against the new employer, notice pay and redundancy pay. It is rarely used except where the new employer is fundamentally unacceptable. Take advice before objecting.
What is the protective award for failure to consult on TUPE?: Up to 13 weeks gross pay per affected employee, awarded by the employment tribunal. Awards apply where the employer failed to inform and consult representatives properly. Both the outgoing and incoming employer can be liable; typically the incoming employer pays.

Sources and further reading

Transfer of Undertakings (Protection of Employment) Regulations 2006 — The primary TUPE regulations.
ACAS: TUPE guidance — Free, impartial guidance on TUPE.
GOV.UK: Transfers of employment (TUPE) — Government guidance on business transfers.
Collective Redundancies and TUPE Regulations 2014 — Amendments to TUPE consultation rules.
Employment Rights Act 1996, section 86 — Statutory minimum notice.

General information about UK employment law, not legal advice. For your situation, contact ACAS or an employment-law solicitor.