If your employer sells the business you work for, or a service you help deliver is handed to a new contractor, you might reasonably fear for your job. The good news is that UK law provides a specific and powerful shield in these situations. Known as TUPE, this legislation is designed to protect employees when the organisation they work for changes hands, keeping their jobs and terms intact rather than leaving them at the mercy of a new employer. This guide explains how those protections work and what you can do if they are ignored.

TUPE Transfer Rights in the UK: What Every Employee Needs to Know

What TUPE Is and When It Applies

TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations 2006. In plain terms, TUPE ensures that when a business or a defined part of it moves from one employer to another, the employees move too — and they keep the rights they had before the change. The whole point is continuity: you should not be treated as a brand-new starter simply because the name above the door has changed.

There are two main situations where TUPE bites. The first is a business transfer, where a business, or an identifiable part of it, is sold or otherwise transferred as a going concern and keeps its identity after the move. The second is a service provision change, which is very common in outsourcing. This covers three scenarios: work being outsourced to a contractor for the first time, a contract being re-tendered and awarded to a new provider, or work being brought back in-house. Cleaning, catering, security, IT support and care services are classic examples where a service provision change occurs when the contract passes to a new firm.

If either of these applies, the employees assigned to the transferring work automatically become employees of the new employer, often called the transferee, on their existing terms. You do not have to resign and re-apply, and the new employer cannot simply pick and choose who they take on.

The Protections You Gain as a Transferring Employee

The core protection under TUPE is that your employment continues seamlessly. Your continuity of service is preserved, so the years you have already built up count towards rights such as redundancy pay, notice periods and unfair dismissal protection. Your existing contractual terms — pay, holiday entitlement, working hours and most other conditions — transfer across largely unchanged, and the new employer inherits your contract as it stood the day before the transfer.

Crucially, the new employer generally cannot change your terms and conditions if the sole or principal reason for the change is the transfer itself. This holds true even if you would agree to the change, which is why attempts to “harmonise” transferred staff onto a new employer’s standard contract can be legally risky for the business. There are limited exceptions, such as changes for an economic, technical or organisational reason (explained below) or variations permitted under the contract.

Pension rights are treated slightly differently. Occupational pension benefits relating to old age and retirement do not transfer in the same automatic way, though the new employer must usually provide some minimum level of pension provision. Because pensions are complex, it is wise to take specific advice and always confirm the current rules on GOV.UK if your pension is a major concern.

Protection From Dismissal and the ETO Reason

TUPE offers strong protection against being sacked because of a transfer. If you are dismissed and the sole or principal reason is the transfer, that dismissal is automatically unfair, regardless of how long you have worked there. This stops employers using a transfer as a convenient excuse to shed staff they no longer want.

There is, however, an important carve-out known as the ETO reason — an economic, technical or organisational reason entailing changes in the workforce. If the new employer genuinely needs to reduce headcount, relocate the operation or restructure roles for legitimate business reasons, a dismissal or redundancy may be lawful provided a fair process is followed. Where redundancies are on the table, the employer must still run a proper procedure, and you should read up on your rights around redundancy consultation so you know what a fair process looks like. If an employer makes your position intolerable or fundamentally breaches your contract during a transfer, you may also have grounds to claim constructive dismissal.

Information, Consultation and What to Do if Your Rights Are Breached

Employers on both sides of a transfer have legal duties to inform and, where measures are proposed, consult with affected employees through their representatives. The outgoing employer must provide “employee liability information” to the new employer before the transfer, and both must tell staff what is happening, when, and why, along with any measures they envisage taking. Failing to inform and consult properly can lead to compensation awards of up to a set number of weeks’ pay per affected employee — always confirm the current maximum on GOV.UK or Acas, as the figure is set by regulation.

If you believe your TUPE rights have been breached — for example you were dismissed because of the transfer, your terms were cut, or there was no consultation — start by raising it in writing with your employer, ideally referencing the TUPE 2006 regulations and Acas guidance. Many disputes are resolved this way. If they are not, you may be able to bring a claim to an employment tribunal, and you must usually start early conciliation through Acas first and act within strict time limits, generally three months less one day from the relevant event. Sometimes an employer will offer a settlement agreement to resolve matters without a tribunal; never sign one without independent legal advice, as it typically waives your right to claim.

Bear in mind that TUPE protection is tied to employee status. If you are an agency worker placed with the business, you may not transfer in the usual way, so it is worth understanding your separate agency worker rights to see where you stand. The rules can be intricate, and the correct outcome often depends on the precise facts of your role and the transfer.

Frequently Asked Questions

Does TUPE mean I keep my exact salary and holiday after a transfer?

Yes. Under TUPE your existing contractual terms, including pay and holiday entitlement, transfer to the new employer largely unchanged. The new employer generally cannot cut them if the main reason for the change is the transfer itself, even with your agreement, apart from limited exceptions such as a genuine economic, technical or organisational reason.

Can I be made redundant during a TUPE transfer?

You cannot be fairly dismissed simply because of the transfer, as that is automatically unfair. However, if the new employer has a genuine economic, technical or organisational reason involving workforce changes, redundancy can be lawful, but only if a fair and proper consultation process is followed.

What is a service provision change?

It is a common TUPE scenario in outsourcing. It covers work being outsourced to a contractor for the first time, a contract being re-tendered and moved to a new provider, or a service being brought back in-house. In each case the assigned employees usually transfer to whoever takes on the work.

What can I do if my employer ignores TUPE?

Raise the issue in writing first, referring to the TUPE 2006 regulations and Acas guidance. If it is not resolved, you may bring an employment tribunal claim, but you must normally begin Acas early conciliation and act within about three months less one day of the event, so do not delay.

Do agency workers transfer under TUPE?

Not usually in the same automatic way as directly employed staff, because TUPE protection depends on employee status. Agency workers have a separate set of protections, so it is worth checking your specific position rather than assuming you will transfer with the contract.

Facing a TUPE transfer or worried about a job change? Atlas can help you understand your position, keep your CV ready and line up your next move if you decide it is time to look elsewhere. Create a free Atlas account and let your AI job-search assistant take the strain while you focus on protecting your rights.