What does TUPE stand for in a business context?

The term TUPE stands for Transfer of Undertakings (Protection of Employment). This legislation is significant in the context of business and employment law, particularly when a business or service is transferred from one owner to another. The purpose of TUPE is to protect employees' rights in situations where the ownership of their employer changes. This ensures that employees are not unfairly dismissed and their terms and conditions of employment are preserved during such transfers.

Under TUPE, employees automatically transfer to the new employer under the same terms and conditions they had with their previous employer. This protection helps maintain job security and continuity for staff, which is crucial for morale and operational stability within organizations undergoing structural changes or mergers. The application of TUPE is a vital consideration for businesses involved in acquisitions or outsourcing, ensuring compliance with employment rights during transitions.