{"id":1724,"date":"2022-01-13T03:27:32","date_gmt":"2022-01-13T03:27:32","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=1724"},"modified":"2026-09-01T02:35:54","modified_gmt":"2026-09-01T01:35:54","slug":"what-happens-to-employees-in-a-sale-of-business","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/business-sale-purchase\/what-happens-to-employees-in-a-sale-of-business\/","title":{"rendered":"What Happens to Employees in a Sale of Business?"},"content":{"rendered":"\n

Selling a business<\/a> in the United Kingdom usually transfers the employees with it. The Transfer of Undertakings (Protection of Employment) Regulations 2006<\/em>, known as TUPE, govern how that works. Employees move to the buyer on their existing terms, and their continuity of service carries over. Liabilities move too, so the buyer inherits claims that arose before completion. Dismissing someone because of the transfer is automatically unfair, regardless of their length of service. The seller must give the buyer employee liability information at least 28 days before the transfer. Both seller and buyer must inform and consult representatives of their own affected employees. This article explains what happens to employees when you sell a business in the United Kingdom, covering how TUPE transfers staff and liabilities, the seller’s information and consultation duties, and the only lawful basis for dismissing in connection with a transfer.<\/p>\n\n\n\n

Overview<\/h2>\n\n\n\n

Suppose you are selling a small or medium-sized business. In that case, the number of employees you have tied to an employment contract will affect your business sale negotiations. It can influence the purchase price and how attractive your business looks to potential buyers, as well as the value of your business<\/a>. In addition, having existing employees can help the new business owner save time and money in recruiting. <\/p>\n\n\n\n

The government introduced the Transfer of Undertakings (Protection and Employment) Regulations<\/em><\/a> (otherwise known as the \u2018TUPE\u2019) in 2014. This article will explain your responsibilities under TUPE.<\/p>\n\n\n\n

What Does TUPE Do?<\/span><\/h2>\n\n\n\n

TUPE applies when a business is sold to a new owner who will operate with the same identity. This means that the business will be run in the same way as before the purchase.<\/span><\/p>\n\n\n\n

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As this is usually the case when a small or medium-sized business is sold to a buyer, it is likely to apply to you. <\/span><\/p>\n<\/div>\n\n\n\n

TUPE sets out that:<\/span><\/p>\n\n\n\n