The Transfer of Undertakings (Protection of Employment) regulations (TUPE) is regulated by several acts, including the Employment Rights Act 1996 and Trade Union and Labour Relations (Consolidation) Act 1992. The goals of the legislation in the area are protecting the rights of workers whose business is transferred to another business. The regulations ensure that employment is protected in the ways that the terms of contracts are not worsened, employees are not dismissed, and the possibly affected workers are aware of possible issues. TUPE applies to the cases in which the company transfers a new employer when another organization buys the business.
There are four stages pertinent to a successful TUPE transfer. The first stage occurs before committing the transfer; the employer should consider whether they want to bid or rebid for a contract and whether employees should be informed about the potential transfer. The second stage is preparation for the transfer; a company must inform workers about the transfer, identify who will transfer, and provide support to the incoming worker. The third stage is transfer, during which an employer should ensure that all employees are managed and settled. Finally, at the next stage, the company should inform workers about possible redundancies and address the concerns they may have.