Information for transferees

Overview

Gill Watkins, Eversheds Last Modified  01 July 2014

Under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (Tupe) employers engaged in the transfer of a business or a change of contractor are required to provide information about the transfer to affected employees and the prospective employer. These obligations are quite separate from any obligations to consult with the employees, if or when these arise (see separate note 'Consulting employees on Tupe').

Transferors have a specific duty to disclose employee liability information (names and ages, terms of employment, collective agreements, disciplinary records, tribunal claims relating to those employees transferring or affected by the transfer) to the transferee employer. Failure to do so could result in a tribunal compensation award of £500 or more for each employee.

Transferors and transferees also have a general duty to inform a recognised trade union, or elected representatives (of their respective employees) about the transfer (when it will take place and why, its economic implications, any measures envisaged by transferor or transferee, and the number of agency workers engaged by the transferor or transferee). This must be done long enough before the transfer for any consultations necessary to take place. From 1 July 2014, small employers (10 employees of fewer) may consult direstly with employees where there are no trade union representatives already in place (see Consulting employees on Tupe). The change was made under the Tupe amendment regulations which came into force earlier this year.