TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations 2006. It protects employees when the business they work for (or part of it) transfers to a new employer — for example, when a company is sold, outsourced services change provider, or a contract is re-tendered. Under TUPE, your employment automatically transfers to the new employer on the same terms and conditions, including pay, holiday, length of service, and other contractual rights.

Can my new employer change my terms and conditions after a TUPE transfer?

Generally, no. Changes to your terms and conditions that are connected to the transfer are automatically void, even if you agree to them. The new employer can only change your terms if: the reason is entirely unconnected to the transfer (e.g. a general company-wide change that affects everyone), there's an Economic, Technical or Organisational (ETO) reason involving changes in the workforce, or the changes are to harmonise terms and there's no detriment to you. If your employer tries to change your terms unfairly, you can refuse and potentially claim constructive dismissal.

Can I be made redundant because of a TUPE transfer?

If the SOLE or PRINCIPAL reason for your redundancy is the TUPE transfer itself, the dismissal is automatically unfair. However, if there's a genuine Economic, Technical or Organisational (ETO) reason involving changes in the workforce — for example, a genuine need to reduce headcount regardless of the transfer — redundancy can be lawful. In that case, normal redundancy procedures and redundancy pay apply. Your continuous service from the old employer counts toward your redundancy entitlement.

What information should I receive before a TUPE transfer?

Both your current (old) employer and the new employer have legal obligations to inform and consult with you BEFORE the transfer. You must be told: when the transfer is happening, why it's happening, the legal, economic, and social implications for you, and any measures the new employer plans to take (e.g. changes to working conditions). If there are 20+ employees, consultation must be with elected employee representatives or trade union reps. Failure to inform and consult can result in compensation of up to 13 weeks' pay.

TUPE Transfer Rights Guide — What Happens When Your Employer Changes | PocketWise

TUPE Transfer Rights Guide — What Happens When Your Employer Changes

Your rights when your employer changes under TUPE, what transfers and what doesn't, redundancy protections, and what to do if your new employer changes your terms.

By PocketWise · 25 March 2026 · 4 min read

If your employer is changing — through a takeover, outsourcing, or contract change — TUPE protects your rights. Here’s what it means for you.

Key Facts

Feature	Detail
Full name	Transfer of Undertakings (Protection of Employment) Regulations 2006
What it protects	Your employment rights when your employer changes
Applies in	England, Wales, Scotland, and Northern Ireland
Key principle	Your employment automatically transfers to the new employer on the same terms
What transfers	Pay, holiday, working hours, pension rights (some), sick pay, length of service
Who’s protected	Employees (not genuinely self-employed workers)

When TUPE Applies

Situation	TUPE applies?
Business is sold (whole or part)	Yes
Outsourcing — service contracted out	Yes (usually)
Re-tendering — contract moves to a new provider	Yes (usually)
Insourcing — bringing a contracted service back in-house	Yes
Merger	Yes
Share sale (company shares change hands but employer stays the same)	No — same employer
Company goes into liquidation	No (unless sold as a going concern)

What Transfers Automatically

Right	Transfers?
Your job	Yes — same or equivalent role
Pay (salary, bonuses, commission)	Yes
Working hours	Yes
Holiday entitlement (including accrued, untaken)	Yes
Continuous service	Yes — counts from original start date
Redundancy entitlement	Yes — based on total continuous service
Contractual sick pay	Yes
Maternity/paternity rights	Yes
Notice period	Yes
Restrictive covenants	Yes
Trade union recognition	Yes
Occupational pension (future accrual)	Partially — new employer must provide a minimum pension, but doesn’t have to match the old scheme exactly
Non-contractual benefits (e.g. staff discounts, gym membership)	Not guaranteed — only contractual terms transfer

What Doesn’t Transfer

Element	Detail
Old occupational pension (exact scheme)	New employer must offer a pension but not the same scheme
Criminal liability of the old employer	Stays with the old employer
Non-contractual discretionary benefits	May not transfer unless they’ve become contractual through custom and practice

Your Rights Before the Transfer

Right	Detail
Information	Both old and new employer must inform you about the transfer
Consultation	Must consult with you (or your reps) about any planned changes
Timing	Information and consultation must happen before the transfer
Who consults	For 20+ employees: elected reps or trade union. Fewer than 20: can consult directly with employees
Compensation for failure	Up to 13 weeks’ pay per employee if proper consultation doesn’t happen

What You Must Be Told

Information	Who tells you
When the transfer will happen	Old employer
Why the transfer is happening	Old employer
Legal, economic, and social implications	Old employer
Measures the new employer plans to take	New employer (via old employer)

Changes to Terms and Conditions

Type of change	Allowed?
Change connected to the transfer	No — automatically void
Change for an ETO reason (Economic, Technical or Organisational) involving changes in the workforce	Potentially yes — must still consult
Change entirely unconnected to the transfer	Yes — normal employment law applies
Harmonisation of terms (levelling up)	Only if no detriment — and not because of the transfer
Harmonisation of terms (levelling down)	No — even if the employee agrees

What Counts as an ETO Reason?

ETO reason	Example
Economic	Genuine financial difficulties
Technical	Changes in equipment, systems, or technology
Organisational	Changes to the structure, location, or number of the workforce

The ETO reason must involve changes in the workforce — i.e. changes to numbers, functions, or location of employees. Simply wanting to harmonise terms is NOT an ETO reason.

Redundancy and TUPE

Situation	Outcome
Dismissed because of the transfer	Automatically unfair dismissal
Dismissed for a genuine ETO reason	May be fair if proper redundancy procedure is followed
Redundancy pay	Based on total continuous service (old + new employer)
Notice period	Your contractual notice period applies
Selection for redundancy	Must follow a fair process (same as normal redundancy law)

If Things Go Wrong

Problem	Action
Not informed/consulted before transfer	Claim compensation (up to 13 weeks’ pay) at employment tribunal
Terms changed unfairly	Refuse the changes, grieve formally, and potentially claim constructive dismissal
Made redundant solely because of transfer	Claim automatic unfair dismissal
Not transferred (told you don’t have a job)	You may still be employed — take legal advice immediately
Transferred but demoted or given different work	This may be a breach of contract — grieve and take advice

Time Limits

Claim	Time limit
Unfair dismissal	3 months minus 1 day from dismissal (after ACAS early conciliation)
Failure to inform/consult	3 months from the transfer date
Breach of contract	3 months (employment tribunal) or 6 years (county court)

Practical Checklist for Employees

Step	Action
1	Keep copies of your current contract, payslips, and terms
2	Note your start date for continuous service
3	Record your current terms — pay, hours, holiday, pension, benefits
4	Ask questions — request a meeting with your employer and/or the new employer
5	Check what’s been agreed between old and new employer
6	Compare your new contract carefully with your old terms
7	Don’t sign any new contract that reduces your terms without taking advice
8	Get advice if anything looks wrong — ACAS, Citizens Advice, or a union