Understanding TUPE for Employees when a Company Enters Administration!

what does TUPE mean

Do you look for someone ready to protect the rights of employees, especially during the times when the company decides to enter into administration? TUPE regulations are just the right fix for this cause that can serve employees and their rights. Do you wonder ‘what does TUPE mean’ to be exact?

These consequences happen when a company is sold out and the current employees are now transferred and become a part of the new company. However, in such a situation, the employees often feel uncertain about their rights. The sense of insecurity is valid until they find a way to fix this factor of uncertainty. Before delving further into the discussion, we will like you to know that we have covered an introductory explanation of TUPE and its rules for a basic understanding in this blog. We will begin with the introduction.


What Does TUPE Mean?

TUPE is the abbreviation of the Transfer of Undertakings that refers to the services of protecting employees. This further helps to ensure that the employees feel safe and protected about their rights. It is when the uncertainty comes the situation is like a business is sold out into administration. There needs to be a set of rules that can ensure that the current terms and conditions of the employment will continue and will remain safe.

Furthermore, the employees look upon a safe transfer of the contract transfer to the new company and its employer. There is no chance that the current contract is terminated unless there are specific situations occur. The part of the regulation transfer is difficult to deal with. This brings a set of responsibilities to take the process smoother for the old and new employers.

For the employer, it is important to understand that all the employees are well aware of the process and all the stages explain well what is going on. In the case a business is about to be closed or liquidated, the TUPE rules are not applicable in this situation.


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Learn TUPE Regulations

If we focus on understanding the purpose of the administration in this process. An administration of a company aims to get any single of the given targets:

  • It is to get the best results for the creditors in case the business is wound up.
  • The administration should realise the duty of handling the assets as well as dealing with the associated creditors.
  • The company should show a going concern.

TUPE aims to cover every employee contract. This includes the following points:

  • The service length of each employee that is required to be transferred to the new company.
  • It aims to cover employees’ rights in such a way that working hours are fully justified.
  • They consider the right to make a claim about the arrears like monies and holiday pays.

Moreover, the representatives of employees must know what is the process all about and what exactly will happen to them. This is the responsibility of the current employee and the new employee as well. In a case where a business requires less than ten individuals to work, it is better to talk to employees right away.


The Bottom Line

The discussion about ‘What Does TUPE Mean’ has finally come toward wrapping up. We can say that TUPE is, indeed, a great help to protect the right of employees in case the company is sold out. This ensures the employees that their rights are well protected and transferred to the new employer as well. However, there are plenty of options to consider to ensure seamless processing in this regard. We hope you have gathered a fair amount of information to make the right business choices.


Do you seek further information about TUPE and need to learn more about it? We are an independent, unbiased platform providing you with a single place for your accountant search.

Disclaimer: The information about ‘What Does TUPE Mean’ provided in this blog including text and graphics is general in nature. This does not intend to disregard any of the professional advice.