TUPE Transfer Policy Template for UK Businesses
A TUPE transfer policy sets out how your organisation manages the transfer of employees when a business, undertaking, or service provision changes hands. The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) protect employees' terms and conditions, continuity of service, and jobs when a transfer occurs. TUPE applies to business transfers (Regulation 3) and service provision changes (Regulation 3(1)(b)), including outsourcing, insourcing, and contract re-tendering.
Who Needs This Policy?
Any UK employer involved in business acquisitions, mergers, outsourcing, insourcing, or contract changes should have a TUPE policy. Both the outgoing employer (transferor) and the incoming employer (transferee) have obligations under the Regulations. Failure to comply with TUPE can result in automatically unfair dismissal claims, failure to inform and consult claims (up to 13 weeks' pay per employee), and liability for changes to terms and conditions.
What's Covered
This tupe transfer policy template covers 13 key sections:
Purpose
This policy sets out how [your details] meets its obligations under the Transfer of Undertakings (Protection of Employme...
Scope
This policy applies to all employees of [your details] who may be affected by a TUPE transfer — whether as transferring ...
When TUPE Applies
TUPE applies in two situations: A business transfer occurs when an 'economic entity' — an organised grouping of resour...
Automatic Transfer of Employees
Where TUPE applies, affected employees automatically transfer to the new employer on their existing terms and conditions...
Pensions
Occupational pension rights do not automatically transfer under TUPE. However, where TUPE applies, the incoming employer...
Information and Consultation Obligations
Both the outgoing employer (transferor) and the incoming employer (transferee) have information and consultation obligat...
Employee Liability Information
Where [your details] is the outgoing employer (transferor), Regulation 11 requires [your details] to provide the incomin...
Dismissal in Connection with a Transfer
Under Regulation 7, a dismissal is automatically unfair if the sole or principal reason for the dismissal is the transfe...
Changes to Terms and Conditions After the Transfer
Under Regulation 4(4), any change to an employee's contractual terms is void if the sole or principal reason for the cha...
Employees Who Object to Transfer
Under Regulation 4(7), an employee may object to transferring to the new employer. If they do, the transfer does not ope...
Roles and Responsibilities
(TUPE lead at [your details]) is responsible for: - Identifying whether TUPE applies to a planned transaction or contra...
Related Policies
This policy should be read alongside: - Redundancy Policy (where restructuring follows a TUPE transfer) - Disciplinary ...
Review
This policy will be reviewed annually, or sooner if there are changes to TUPE Regulations or relevant case law. The next...
Legal Framework
This policy template is grounded in the following UK legislation and guidance:
- Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246), Regulations 3-4 (scope, automatic transfer), Regulation 7 (automatically unfair dismissal), Regulation 11 (Employee Liability Information), Regulations 13-16 (information and consultation)
- Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014 (SI 2014/16)
- Transfer of Employment (Pension Protection) Regulations 2005 (SI 2005/649)
- Employment Rights Act 1996, s.218 (continuity of employment preserved on TUPE transfer)
How Complaiance Helps
Our tupe transfer policy goes beyond a generic template:
- Covers both Regulation 3(1)(a) business transfers and Regulation 3(1)(b) service provision changes
- Employee Liability Information (ELI) checklist covering all data required 28 days before transfer
- Information and consultation obligations for both transferor and transferee with timeline
- Guidance on which contractual changes are permitted post-transfer and which are void under Regulation 4
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Get Started FreeFrequently Asked Questions
What is TUPE and when does it apply?
TUPE (Transfer of Undertakings (Protection of Employment) Regulations 2006) applies when a business or part of a business is transferred to a new owner, or when a service is outsourced, brought in-house, or re-tendered to a new provider. It protects employees by automatically transferring their employment contracts, terms, and continuity of service to the new employer. Dismissals connected to the transfer are automatically unfair unless there is an economic, technical, or organisational reason entailing changes in the workforce.
Can an employer change employees' terms after a TUPE transfer?
Changes to terms and conditions are void under Regulation 4(4) if the sole or principal reason is the transfer itself. However, changes are permitted if the reason is an economic, technical, or organisational (ETO) reason entailing changes in the workforce (e.g., redundancies), or if the change is for a reason unconnected with the transfer. The Supreme Court in Parkwood Leisure v Alemo-Herron confirmed that transferred collective agreements are frozen at the point of transfer.
What happens to employees' pensions on a TUPE transfer?
Occupational pension rights (old age, invalidity, and survivors' benefits) are excluded from TUPE under Regulation 10. However, under the Transfer of Employment (Pension Protection) Regulations 2005, the new employer must provide a qualifying pension scheme if the old employer provided an occupational pension. This is usually a defined contribution scheme matching employee contributions up to 6%.