The government has published a call for evidence on the operation of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE). Responses will be used to inform the development of government policy on potential reforms to TUPE in order to improve the efficiency of TUPE processes and strengthen protection for employees.
Background
The aim of TUPE is to protect the rights of employees. Broadly speaking, it applies in two main scenarios:
- On the transfer of a business or undertaking, or part of a business or undertaking, from one organisation to another
- On the transfer of the provision of a service from one organisation to another, such as an outsourcing, or bringing an outsourced service back in-house - this is referred to as a service provision change, or SPC
Where a TUPE transfer takes place, employees of the old employer automatically become employed by the new employer on their existing terms of employment, with no a break in their continuity of service (e.g. for the purposes of unfair dismissal protection and redundancy payments).
Changes to transferring employees' terms will generally be void if the sole or principal reason for the change is the transfer itself and the reason is not an "economic, technical or organisational reason entailing changes in the workforce" (ETO reason). It is also automatically unfair to dismiss an employee if the sole or principal reason for dismissal is the transfer and is not an ETO reason.
Call for evidence
The call for evidence, which was published on 8 April 2026, notes that the government's Plan to Make Work Pay committed to strengthening rights and protections for employees affected by a TUPE transfer. With that end in mind, the call for evidence seeks views on the operation of the current law, including whether:
- The law is clear on when TUPE applies
- TUPE strikes the right balance between supporting employer needs and protecting employees' employment rights
- The requirements are sufficient to ensure employees are informed and consulted when a transfer takes place
- Collective agreements and employees' pension rights are adequately protected on a TUPE transfer
- The circumstances in which an employer can change the contractual terms of transferring employees are sufficiently clear and strike the right balance between supporting employer needs and protecting employees' employment rights
- There are any unintended consequences from the operation of TUPE for individuals with a protected characteristic under the Equality Act 2010 or different socio-economic background
Views from employers who have experience of TUPE transfers are stated to be particularly welcome, and the call for evidence invites employers to provide examples of how they have found the process, including what worked well and what issues they encountered.
What does this mean for employers?
The call for evidence runs until 1 July 2026, after which the government will analyse responses and develop policy options for potential reform of TUPE. Any proposals for reform will then be subject to further consultation, so substantive changes to the law are still a long way off. However, the current law is complex and imposes quite significant restrictions on employers' ability to change the terms of employees who have transferred in. Employers will therefore be concerned that any plans to further strengthen the TUPE regulations could impose significant additional burdens on business. Employers are therefore encouraged to contribute to the call for evidence to ensure that the government has a full picture of the operational impacts of the current law.
Make Work Pay: Call for evidence on Transfer of Undertakings (Protection of Employment) Regulations
