Breach in Transfer of Undertakings (Protection of Employment) Regulation (TUPE) and Compensations

UK’s TUPE regulation of 2006 protects the employees’ jobs when the business or company is handed over to a different management. Such a condition might arise during merger or when the company is sold off.

To prevent the employees from being fired or unfairly dismissed, the TUPE states that the old employees automatically become new employees of the company under the same employment contract as and when they are handed over to the new employer.

The employees must be informed of the take over and informed of the consequences beforehand.

Safeguarding the employee’s rights

This issue is discussed in the second chapter of TUPE and states the directives to be followed by the transferee (new employer) with regard to employment contracts. The transferee is bound legally to follow the contractual law and any dismissal other than for economic, technical and organisational reasons will be deemed as unfair dismissal.

Breach in the regulation

In the following circumstances, an employee can claim for compensation:

• If you are dismissed on grounds other than the ones stated above or were forced to resign due to the consequences of the transfer.
• If you wish to claim for redundancy payment. The application must be filed within 6 months of dismissal or transfer.
• If your employer did not consult or give enough information with regard to the transfer.

You may claim against both the new and the old employer as may be the case to an employment tribunal for unfair dismissal. If you are unclear of whom to claim compensation against, then consult a good compensation solicitor to help you out.

All the filing should be done within 3 months of the transfer or dismissal or resignation. The tribunal may make exceptions and extend the date if they feel there are valid reasons.

Compernsation

The tribunal will let the ACAS heart the case and try an out of court settlement. If that doesn’t work out, then the tribunal after hearing both the party’s arguments will come to a verdict. If the employer is found guilty, then the employee will receive the following awards:

• Reinstatement or re-engagement with the same employer with basic award.
• Detriment award is given to any employee for the damages he/she may have sustained during the process of transfer and subsequent dismissal from work. There is no limit for the amount and is decided by the tribunal.
• For denial of information prior to transfer or failure of consultation of part of the employer may lead to the employer paying a information and consultation award which is payment of up to a month’s salary as compensation for each affected individual.

Bottom line is TUPE protects the rights to continuity of services and other rights the employees are entitled for. For more information on how to claim compensation, consult your negotiation officer or hire an attorney to assess your case and take care