In the Transfer of Undertakings (Protection of Employment) Regulations 2006, or TUPE, business buyers should know that they are not only taking on the employees, but also responsibility to honour all existing employment contracts and conditions of employment. This also includes disputes, tribunal claims and collective employment agreements.
The TUPE regulations apply whenever there is deemed to be a ‘relevant transfer’ of an undertaking. This applies to mergers, sale of a business by way of assets sale, going concern, or a change in franchisee among others. It does not apply to business transfers by way of share take-over.
More information on TUPE