Andrew Willis
15 Jan 2020
The implications of handling a TUPE process incorrectly can be extremely harmful to business, which is why putting proactive measures in place will safeguard your business and offer protection to save cost, time, and ultimately your reputation.
Transferring employees can be complex and risky for business if not handled correctly. But don't worry you're in safe hands with our top 10 tips for managing Tupe Transfers.
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Top 10 TUPE Transfers Tips
1. Look out for problems as early as possible
You must conduct effective due diligence, which is ‘the care a reasonable person should take before entering into a legal agreement’.
2. Ensure employee liability information is transferred
The transferee is entitled to receive employee liability information from their outgoing employer. If the information isn’t collated and updated properly, you could receive a minimum £500 penalty.
3. Check who transfers
You must look at the circumstances and only transfer employees who are assigned to the work activities, or employee group, in question.
4. Get relevant employment information
You must get full disclosure of pre-transfer promises for all transferring employees. You should also back this up with warranties and indemnities. These are used to reallocate risk between buyers and vendors.
5. Remember staff can refuse to transfer
If an employee chooses not to transfer, their employment terminates immediately, and they don’t need to serve a notice period.
6. Offer equivalent benefits
Quite often it’s impossible to replicate the benefits offered by the previous employer. You should look to offer a substantially equivalent arrangement.
7. Ensure agency worker information is transferred
Details of the transferor’s agency workers must be provided to their new employers. If this information isn’t provided it could lead to an award of up to 90 days’ pay per employee.
8. Beware of hidden TUPE transfers
Failing to spot a TUPE transfer could lead to an employer paying a financial penalty of up to 13 weeks’ pay per employee.
9. Expect disputes
The activities in question must remain the same for TUPE to apply. Some employees, such as contractors, may challenge this.
10. Be as flexible as possible
Harmonising the terms and conditions of transferring employees with your existing workforce is important but tricky. Getting the balance right requires flexibility and often compromise.
TUPE support
For expert support with sourcing and building your business’ HR policies and procedures contact Croner on 0808 145 3490.
About the Author
Andrew Willis is the senior manager of the Litigation and Employment Department and assumes additional responsibility for managing Croner’s office based telephone HR advisory teams, who specialise in employment law, HR and commercial legal advice for small & large organisations across the United Kingdom.
@AndrewWillisCGL
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