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Employment contracts, practice sales, and TUPE

This advice describes the implications of the TUPE regulations when a practice is sold and purchased, including the rights of existing staff.

Overview

The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) safeguard employees' rights when a business changes ownership. Employees transfer automatically to the new employer, retaining their existing terms and conditions. They are protected from dismissal both before and after the transfer.

As the incoming employer, it is important to consider the implications of TUPE before making changes to the practice structure. Proceeding without due care may result in legal risk.

TUPE may apply beyond business transfers. Situations such as service provision changes, NHS contract tendering (in England and Wales), and outsourcing may also trigger TUPE obligations.