Mergers, Acquisitions and Outsourcing

Mergers, acquisitions and outsourcing

If you are buying or selling a business, it is likely that the Transfer of Undertakings (Protection of Employment) Regulations 2006, better known as TUPE, will apply to the transaction.

Where most employment law focuses on the reasonableness of an employer’s behaviour, TUPE is one of the few areas that is very proscriptive as to what employers (and future employers) must and must not do.  Failing to follow TUPE can expose the company to the risk of a protective award: one of the few types of compensation which is designed to punish the employer, rather than compensate the employee.

We understand that when you are buying or selling a company there are many issues to focus on and we will work with you to find the most commercial and practical ways to meet your obligations under TUPE.

It is also important to remember that TUPE applies not only to buying and selling a business, but also to out-sourcing work.  Some companies bid for and win a new contract and then discover that the previous supplier is trying to off-load its employees to the new provider.  We can help you make sure that winning or losing a contract does not give you an unexpected HR headache.

If you would like further information please contact us on 023 8033 4661 or fill in the enquiry form.

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