Employment and human resources specialists ACAS have released new guidance to help employers whose companies are switching ownership to another firm.
One in eight businesses in Britain have undergone a business transfer, impacting on around two million employees each year. A change of ownership means that employers have to comply with Transfer of Undertaking Regulations (TUPE) to ensure that workers’ rights are protected. Last year, around 28,000 calls were made to the Acas helpline regarding TUPE.
The new guidance emphasises the need for communication and collaboration to ensure transfers go smoothly. It advises businesses to consult stakeholders and trade unions extensively, involve employees throughout the process and keep records and contract information as up-to-date as possible
“TUPE is often seen as complicated but employers need to get to grips with the detail if they decide to buy a business or take on work being carried out by others.” Said Anne Sharp, Chief Executive of Acas.”If things go wrong the fall out can damage individuals and organisations. Our new guidance provides a clear overview of the requirements and helps people understand in straightforward and practical terms what they need to do.”
She added: “TUPE can affect all businesses and organisations, whatever their size or sector. One of our key messages is that you should involve employees early to minimise concerns and potential problems further down the track.”