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Employee benefits following a TUPE transfer

A guide explaining how employers should manage employee benefits following a TUPE transfer, including contractual and discretionary benefits and the risks of changes to terms and conditions.

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By James Green and Adrian Martin

Business sales, outsourcing and retendering can all give rise to a relevant transfer for the purpose of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246) (TUPE). Where there is a transfer to which TUPE applies, all the transferor’s rights, powers, duties and liabilities under or in connection with the contracts of employment of transferring employees will transfer to the transferee.

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  • Identify employees’ terms and conditions
    • Multiple transferees
  • Determine whether benefits are contractual or discretionary
    • Contractual benefits
    • Discretionary benefits
  • Address practical difficulties with provision of some benefits
    • Flexible benefits schemes
    • Share schemes
    • Cycle-to-work schemes
  • Consider benefits provided to current employees
  • Comply with information and consultation obligations
  • Identify risks arising from changes to terms and conditions

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Enhanced with additional information, including on transfers involving multiple transferees and post-transfer changes to terms and conditions.

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About the authors

James Green
Director, Burges Salmon LLP

James Green is a director in the employment team at Burges Salmon LLP. He has particular experience and expertise in advising clients in the financial services sector.

His specialisms include the employment aspects of corporate and commercial transactions (including outsourcing, joint ventures and acquisitions), corporate restructuring and insolvency, and the legal and practical aspects of TUPE. He also advises clients on workplace change programmes and redundancies, restrictive covenants, day-to-day HR matters including disciplinary and grievance issues and employment tribunal litigation.


Adrian Martin

Partner Adrian Martin heads up the award-winning employment team at Burges Salmon. Adrian has extensive experience as an employment specialist advising many household name employers on strategically significant HR projects. Particular specialisms include managing TUPE issues in major public- and private-sector projects, advising on restructuring and workplace change programmes and advising on C-Suite employment issues. Adrian also represents employers in complex tribunal proceedings in the Employment Appeal Tribunal and higher courts.

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