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Whenever a business is sold, the parties must comply with the Transfer of Undertakings (Protection of Employment) Regulations 2006, known as the TUPE Regulations.

Here are some of the major points if you are selling a business:

1. Employees must be consulted.
2. Where employees are represented by a Trade Union recognised for collective bargaining purposes, an authorised official of that union must be informed and consulted.
3. Where there is no Trade Union, the employer must inform and consult other employee representatives, who could be new representatives elected for the purpose. There are rules that apply where new representatives are specially elected for the purpose. It is strongly recommended that employers seek specialist legal advice to avoid potential employment tribunal claims.
4. The employer must tell any employees affected by a TUPE transfer:-
  • that the transfer is to take place,
  • when it is to take place,
  • the reasons for it,
  • the legal, economic and social implications of the transfer,
  • any measures the employer or the vendor envisage taking in relation to the affected employee.
5. All employees should be consulted with and given adequate time for consultation.
6. When employees transfer out of your business, you must give the new employer certain information about those employees. Any failure to do so could result in the grounds for a claim.

Lawson-West act for many people selling their businesses and Lawson-West work closely with clients to ensure that the business transaction takes place smoothly with minimum disruption and maximum protection.

Due to the complex nature of TUPE we strongly advise that you seek specialist advice as soon as possible.
For more details or a copy of the TUPE Regulations, contact Ashley Hunt, Vaishali Thakerar or Carrie-Ann Randall on 0116 212 1000 now. Lawson-West also offer advice on the TUPE Regulations for Buying a Business.