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HR Tip: Transfer of undertakings

Under TUPE regulations, when a business function transfers to a contractor, employees can either move with the contractor or leave their position. If an employee declines the transfer and no alternative role exists, their departure is treated as resignation rather than dismissal, with no break in service continuity.
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These questions are being answered by Learn HR, a market leader in the provision of HR and payroll training and nationally-recognised professional qualifications.


Question: "We are transferring a function out to a contractor but one of the employees affected does not wish to transfer. We have no job we can offer him. How do we stand?"

HR Tip: The purpose of TUPE is to ensure that there is no break in an employee's service in the event of a business transfer. The employee therefore has two options – move to the contractor or leave. If he chooses to leave, there will be no dismissal. It is tantamount to a resignation, though technically his employment will be brought to an end by effect of the transfer. I suggest that you talk to the employee, determine what the real problem is, and try to have him accept continued employment with the contractor.

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