UK TUPE Transfer Rights (2026/27): What Happens to Your Job When the Business is Sold
UK TUPE transfer rights 2026/27: Transfer of Undertakings (Protection of Employment) Regulations 2006, which transactions trigger TUPE, your protected terms + conditions, the ETO defence for dismissals, information + consultation obligations, harmonisation timing limits, and pension exemption mechanics.
What transfers + what doesn't
| Term / condition | Protected on transfer? |
|---|---|
| Salary + pay structure | Yes - transfers identically |
| Contractual benefits | Yes - life assurance, private medical, etc. |
| Service continuity | Yes - service date preserved for redundancy + unfair dismissal |
| Holiday entitlement | Yes - accrued + ongoing rate |
| Working hours + location | Yes - subject to mobility clauses already in contract |
| Pension - DB scheme accrued benefits | Partially - statutory minimum protection only |
| Pension - DC scheme ongoing contributions | Yes - new employer must match old contributions up to statutory minimum |
| Bonus / share schemes | Substantially - cannot be removed without consent |
| Notice period | Yes - contractual notice transfers |
| Restrictive covenants | Yes - transfer with original geographic scope (which may now be wider) |
Pension is the main carve-out: occupational pension rights for past service do NOT transfer (Regulation 10). Past service stays in the old employer\'s scheme as a deferred member; ongoing contributions transfer at minimum auto-enrolment level unless the new employer chooses to match the old scheme.
Does TUPE apply to your situation?
Two types of transfer trigger TUPE:
- Business transfer - a business or identifiable part is sold as a going concern. Share sales DON\'T trigger TUPE (the legal entity stays the same; just the owner changes). Asset purchases where the business operations continue DO trigger TUPE.
- Service provision change (SPC) - a contract for services moves between providers. Initial outsourcing (in-house team to external contractor), re-tendering (contractor A to contractor B), and insourcing (contractor back to in-house) all qualify. Post-2014 amendments require "organised grouping of employees" wholly or mainly assigned to the service - one-off projects or shared services often fail this test.
Not TUPE: share sales (legal entity unchanged), winding up + new starts elsewhere (no continuity), pure asset sales without continuing the business, replacing software but not staff. Practical test: if the work continues after the change + a "stable economic entity" passes between employers, TUPE likely applies.
Strategic priorities for transferring employees
- Request the "measures" letter in writing from both old + new employer. Vague verbal assurances vanish post-transfer.
- Document your current terms before transfer. Pay rate, bonus history, benefits, working pattern, holiday entitlement. Difficult to enforce protection if no record of what existed.
- Check pension arrangement before transfer. Past service stays in old scheme; ongoing contributions may drop to auto-enrolment minimum unless new employer commits otherwise in writing.
- Look at restrictive covenants - they transfer + may apply to a wider competitor set under the new owner. Negotiate clarity if you might leave.
- Don\'t object lightly - objection terminates your employment with no redundancy. Better to transfer + negotiate exit if needed.
- Beware "voluntary" harmonisation 6-12 months post-transfer - signing new terms is binding even if you didn\'t need to.
- Track service continuity - your start date with the old employer counts for redundancy + unfair dismissal at the new employer.
Related guides
- UK Employment Contract Red Flags 2026/27 - clauses that may be wider post-transfer.
- UK Statutory Redundancy Pay 2026/27 - if redundancy follows transfer.
- UK Collective Redundancy Consultation 2026/27 - parallel consultation duties.
- UK Pension Auto-Enrolment 2026/27 - minimum pension on transfer.
- UK Notice Period Rules 2026/27 - notice transfers with terms.
Frequently asked questions
What is TUPE and when does it apply?
TUPE = Transfer of Undertakings (Protection of Employment) Regulations 2006. Applies to two types of transfer: (1) Business transfers - a business or part of a business is sold as a going concern. (2) Service provision changes (SPCs) - a contract for services moves between providers (e.g. outsourcing, insourcing, or changing contractors). The 2014 amendments tightened SPC tests requiring "organised grouping of employees" wholly or mainly assigned to the contract. If TUPE applies, the affected employees automatically transfer to the new employer on identical terms - they cannot be "left behind".
Can I refuse to transfer?
Yes. You can object to the transfer under Regulation 4(7) TUPE 2006 by notifying either the old or new employer in writing before the transfer date. The effect: your employment automatically terminates on the transfer date, but you are NOT treated as dismissed - meaning no redundancy pay, no notice pay, no unfair dismissal claim. This is rarely the right choice unless: (a) the new employer is undesirable for specific reasons (covenant concerns, regulatory issues), (b) you're close to retirement and don't want disruption, (c) you have another job lined up. Better strategy: transfer + then negotiate exit with the new employer.
Can the new employer change my terms after the transfer?
Only with limitations under Regulation 4(4)-(5). Changes are void if: (a) the sole or principal reason for the change is the transfer itself, OR (b) the change is to your detriment + connected to the transfer. The "harmonisation" defence (changing terms to align with new employer's standard terms) was strengthened in 2014 but is hard to use: you need an "economic, technical or organisational" reason (ETO) entailing changes in the workforce. Practical: minor changes (e.g. new HR system) are fine; pay cuts or material benefit removals justified only by harmonisation are typically void. Get any proposed changes in writing + take advice.
Can I be made redundant during or after a TUPE transfer?
Only if there's a genuine reason unconnected with the transfer, OR an "ETO reason entailing changes in the workforce" (Regulation 7). Examples of valid ETO: post-transfer the new employer genuinely needs fewer staff in your role, new operational structure requires different skills mix, the new employer's site location requires reduced headcount. Examples that don't qualify: dismissal "to make the transfer easier", dismissal because new employer prefers existing staff, dismissal in the 6 months before transfer to make the business more saleable. Dismissals "connected with the transfer" without ETO = automatically unfair regardless of service length.
What information must I receive before the transfer?
Under Regulation 13 the old employer must inform appropriate representatives (recognised union or elected employee reps) - generally not employees directly. Information includes: (a) the fact of the transfer + proposed date + reasons, (b) legal, economic, and social implications for the affected employees, (c) any measures the employer will take (or none if none), (d) measures the new employer will take. This must be in time to allow meaningful consultation. For 10+ affected employees the consultation must be genuine + with a view to reaching agreement. Failure: up to 13 weeks pay protective award per affected employee.
What happens to my pension on transfer?
Complex - the basic rule is that occupational pension rights do NOT transfer under TUPE for past service in the old employer's scheme. Past service stays in old scheme as a deferred member. For ongoing contributions: Pensions Act 2004 requires the new employer to offer a "stakeholder-equivalent" pension scheme (essentially auto-enrol minimum compliance). DC scheme contributions: under Pensions Act 2004 sections 257-258 + Transfer of Employment (Pension Protection) Regulations 2005, the new employer must MATCH employee contributions up to 6% (a more generous floor than auto-enrolment minimums). Some employers do match the old scheme rate where higher - check the transfer terms. Push the new employer for confirmation in writing of the pension arrangement before transfer date.
Are my restrictive covenants transferred to the new employer?
Yes - all contractual terms transfer including restrictive covenants. This creates an unexpected outcome: a non-compete restricting work for "competitors of [old employer]" now restricts work for competitors of [new employer], which may be a wider or different competitor set. Negotiate clarity before transfer if your covenants are restrictive. The new employer cannot impose NEW covenants in the absence of consideration.
How long does the post-transfer protection last?
There's no fixed expiry - TUPE protection of terms continues indefinitely while you remain employed. The practical reality: courts have been more willing to accept post-transfer harmonisation as time passes IF the new employer can show non-transfer reasons (genuine business changes, restructure, voluntary opt-in to new terms with consideration). A pay cut 2 years after transfer to align with new employer's standard terms is much easier to justify than the same change at month 1. There's no statutory "freeze period" but practitioners typically observe 12+ months before substantial changes.