How TUPE and Company Mergers Affect Security

Many businesses are in a unique position now, with the volatility of the market caused by the current circumstances leading to many businesses merging or being sold to new owners.

When this happens, your job position can feel a bit unstable, as you are uncertain as to how much of the old company will be retained.

Thanks to TUPE, there is a little more clarity about your job security, as well as who operates your commercial security in London and across the UK.

What is TUPE?

TUPE is short for the Transfer of Undertaking (Protection of Employment) regulations, which are laws that dictate how the employees of one company need to be treated if it is taken over or merged into another company.

Essentially it is there to protect jobs when there is a merger and avoid staff from losing their jobs or facing reductions in pay or a change in their contract.

TUPE applies either when a business changes ownership, either through a merger or a new owner, or when a service that was formerly in-house is contracted out.

In either case, where it applies, an employee’s job transfers to the new company, as well as their terms and conditions of employment as well as continuity for the purpose of calculating employee benefits.

What this means is that in practice, if you are an employee contracted to do a job, the terms in which you signed the contract apply.

You cannot be held to any agreement you did not sign for, and so for the remainder of your contract, you can work under the old terms, although they will likely be renegotiated in due course.

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