10 Steps to Managing a TUPE transfer

Managing a TUPE transfer, legally known as Transfer of Undertakings (Protection of Employment) can be a complex and challenging task for employers. TUPE regulations are designed to protect the rights of employees when a business or service is transferred from one employer to another. As an HR consultancy business, we understand the importance of a smooth and legally compliant transfer process.

In this blog, we outline 10 essential steps for employers to consider when managing a TUPE transfer. These will ensure a seamless transition while safeguarding the rights and interests of all parties involved.

1. Early Identification and Communication

The first step is to identify any TUPE transfers at the earliest opportunity. As soon as the transfer is confirmed, employers should communicate with affected employees, informing them about the transfer and its implications. This ensures transparency and helps to reduce uncertainty and anxiety among employees.

2. Conduct Due Diligence

Employers must conduct thorough due diligence to understand the nature of the transfer and its potential impact on employees. This includes identifying employee rights, contractual obligations, and any relevant liabilities. A comprehensive understanding of the transfer will guide subsequent decision-making processes.

3. Consultation with Employee Representatives

TUPE regulations require employers to consult with employee representatives regarding the transfer. Consultation should be meaningful and occur in a timely manner. Engage with representatives to discuss the transfer’s potential impact, any proposed changes, and ways to mitigate negative consequences for employees.

4. Employee Terms and Conditions

Employers must analyse the terms and conditions of transferring employees to ensure compliance with TUPE regulations. Any changes to contractual terms should be approached cautiously and may require employee consent or negotiation with representatives. Seek legal advice to ensure compliance with TUPE requirements.

5. Communication with the Incoming/Outgoing Employer

Establish effective lines of communication with the incoming/outgoing employer to facilitate a smooth transition.

  • Incoming Employer – Transferee
  • Outgoing Employer – Transferor

The transferor must share essential employee information, known as employee liability information (ELI) with the transferee. This includes contractual details and any additional data that may impact the transfer. Collaborate to ensure a clear understanding of the transferring workforce.

6. Recognise Employee Transfer Rights

TUPE regulations protect employees’ rights and ensure continuity of employment. Employers must recognise and respect these rights, including maintaining existing terms and conditions, continuous employment, and accrued benefits. Failure to do so could lead to legal repercussions.

7. Employee Liability Information (ELI)

Incoming employers should review the ELI throughout the transfer process. It may be that certain information is not uncovered until it starts to be processed. In addition to the ELI, the transferee may require additional information to facilitate the ongoing efficient management of the transferring employees and their business needs.

8. Address Redundancy and Retention Concerns

A TUPE transfer may trigger a redundancy situation, be aware of the ETO reason. Employers should identify potential redundancies early and consult with affected employees and representatives in line with employment law. Additionally, consider retention strategies, such as offering retraining opportunities or alternative positions within the organisation, to mitigate redundancies where possible.

ETO Reason

An ETO reason stands for “Economic, Technical, or Organisational” reason, and it is a crucial concept in the context of the Transfer of Undertakings (Protection of Employment).

When a business or service undergoes a transfer from one employer to another, TUPE aims to protect the rights and terms of employment of the affected employees. However, there are circumstances where the new employer may need to make changes to the workforce, and these changes can be based on an ETO reason.

  1. Economic Reason: An economic reason refers to situations where the incoming employer needs to make changes to the workforce to improve the organisation’s financial situation. For example, if the new employer identifies that certain roles or departments are no longer financially viable, they might need to restructure or downsize to ensure the business’s sustainability.
  2. Technical Reason: A technical reason involves changes that are necessary due to advancements in technology or changes in the methods of production. For instance, if the incoming employer introduces new technology or automated processes, it might lead to changes in job roles or skill requirements, necessitating adjustments to the workforce.
  3. Organisational Reason: An organisational reason pertains to changes required to restructure the company for efficiency and effectiveness. This could involve merging departments, streamlining operations, or reassigning job roles to improve the overall functioning of the organisation.


It’s important to note that for changes to be considered valid ETO reasons under TUPE, they must be genuine. They must not be implemented merely to circumvent the regulations or undermine the employment protections provided by TUPE. Employers must be able to demonstrate that the reasons for the changes are sound and necessary for the continued viability and success of the business or service after the transfer.

If the incoming employer plans to make changes based on an ETO reason, they must engage in a proper consultation process with employee representatives or affected employees. Additionally, they must explain the rationale behind the proposed changes.

9. Mitigate Potential Disruption

The transfer process can be disruptive for employees and the business. Proactively manage the transfer to minimise disruption, such as by providing clear information, facilitating employee support, and addressing any concerns promptly. Regularly communicate with employees to keep them informed throughout the process.

10. Seek Professional HR Advice

Given the complexity of TUPE transfers, employers should seek professional HR and legal advice. An experienced HR consultancy business can provide guidance on compliance with TUPE regulations, support with consultation processes, and help navigate any legal issues that may arise during the transfer.


Successfully managing a TUPE transfer requires careful planning, open communication, and adherence to legal requirements. By following the 10 steps outlined in this blog, employers can ensure a smooth transition while protecting the rights and interests of employees.

Remember, seeking the assistance of an HR consultancy business can provide invaluable expertise and support throughout the TUPE transfer process, ensuring compliance and a positive outcome for all parties involved.


If you need help, HR advice, or hands-on management of a TUPE transfer, contact us without delay to discuss how we can support you.

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