Obligations to inform and consult

Both the transferor and the transferee have an obligation to inform and (if appropriate) consult with recognised trade unions or elected employee representatives in relation to any of their own employees who may be affectedby the transfer or any measures taken in connection with it. Certain information must be provided to the representatives long enough before the transfer to enable the transferor to consult with them about it. Although the duty to inform will arise in every TUPE transfer, the duty to consult only arises where an employer envisages taking measures in respect of affected employees.

A failure to comply with these obligations exposes the parties to up to 13 week’s uncapped pay, for which the transferor and the transferee may be jointly and severally liable.