In the social sector, collaboration, partnership, and shared purpose sit at the heart of how services are delivered. Charities, social enterprises, and not-for-profit organisations often work closely together to meet community needs, respond to funding changes, or deliver vital public services under contract.
But when those contracts change hands, organisations merge, or services are brought back in-house, it’s not just the work that transfers – it’s the people too. For the employees involved, these changes can create uncertainty and anxiety about what the future holds for their jobs, pay, and conditions.
That’s where TUPE comes in. The Transfer of Undertakings (Protection of Employment) Regulations, more commonly known as TUPE, exist to protect employees when a business or service moves to a new employer. These regulations ensure that staff retain their existing rights, contracts, and continuity of service, giving much-needed reassurance and stability during periods of organisational change.
For employers, understanding TUPE is essential to managing workforce transitions fairly, legally, and with care. It’s not just about compliance – it’s about demonstrating integrity, protecting your organisation’s reputation, and maintaining the trust of the people who deliver your mission every day.
At Roots HR, we work with social sector employers every day to manage TUPE transfers smoothly and sensitively. We help organisations prepare, plan, and communicate effectively to reduce risk, maintain compliance, and ensure employees feel informed, supported, and valued throughout the process.
What Is TUPE?
TUPE protects employees’ existing rights when the organisation or service they work for transfers to a new employer. This means that employees automatically move to the new organisation on their current terms and conditions, with their continuity of employment preserved.
In practical terms, the new employer steps into the shoes of the old one, taking on the same responsibilities, obligations, and liabilities.
This regulation exists to ensure that employees are not disadvantaged simply because a business or service changes ownership. For charities and social enterprises, where funding cycles and contract changes are common, knowing how TUPE works helps ensure fairness and compliance at every stage.
When Does TUPE Apply in the Social Sector?
TUPE can apply to two main types of change:
- Business transfers – for example, when one charity merges with another or when an organisation acquires part of another’s activities.
- Service provision changes – when a service contract moves between providers, such as care, cleaning, catering, or housing support services.
In the social sector, these scenarios are common. You may find TUPE applies when:
- You win or lose a contract to deliver a service
- Two organisations merge to streamline operations
- You decide to outsource a service to a third party
- A previously outsourced service is brought back in-house
It’s important to identify early whether TUPE applies, as the process requires clear planning, consultation, and documentation. You may need professional advice to determine whether TUPE applies.
Employer Obligations Under TUPE
Both the old (outgoing) and new (incoming) employers have important legal duties under TUPE regulations, designed to protect employees and ensure a smooth transition when services or contracts transfer between organisations. These responsibilities include:
- Informing and consulting affected employees or their representatives about the transfer and any potential changes that may affect them.
- Sharing employee liability information with the new employer, including details such as length of service, pay, holiday entitlements, and any ongoing disciplinary or grievance matters.
- Ensuring that employment rights, pay, and conditions are maintained after the transfer so that employees experience continuity and stability in their roles.
For smaller charities and social enterprises, consultation can often take place directly with employees, allowing for more open and personal discussions. In larger organisations, this process may involve elected employee representatives or recognised trade unions.
Regardless of size, a clear, structured, and transparent process helps to ensure not only compliance with employment law but also a sense of fairness and respect among employees. Effective communication at every stage of the transfer reduces anxiety, builds trust, and helps maintain morale during what can be an unsettling time.
Taking the time to engage properly with your team also reinforces your organisation’s values – showing that people remain at the heart of your decision-making, even during periods of change.
You can find further official guidance on the ACAS website here: https://www.acas.org.uk/tupe-transfers
TUPE and Redundancy
Understanding the relationship between TUPE and redundancy is vital for employers in the social sector, where changes in funding, contracts, or service delivery often lead to structural reviews or workforce changes.
Under TUPE regulations, employees are protected from being dismissed simply because a transfer is taking place.
- Before a transfer, dismissing employees for a reason connected to the transfer itself is automatically unfair, regardless of whether the employer believes redundancies are necessary. The purpose of this rule is to ensure that employees are not treated unfairly as a direct result of the change in ownership or provider.
- After a transfer, redundancies may be lawful only where there is a genuine economic, technical, or organisational (ETO) reason involving changes to the workforce. This means there must be a legitimate business reason for reducing roles or reorganising work once the transfer has completed.
Examples of ETO reasons relevant to social sector employers include:
- Economic – the new employer loses funding, experiences a reduction in grants, or faces financial constraints.
- Technical – new systems, processes, or technologies are introduced that change how work is delivered.
- Organisational – the structure of the team changes, roles are merged or removed, or services are redesigned to meet new priorities.
It’s important to remember that even when redundancies are necessary after a TUPE transfer, employers must still follow a fair consultation and selection process. This includes open communication, considering alternatives to redundancy (such as redeployment or reduced hours), and ensuring that selection criteria are objective and free from bias.
For organisations built on values of fairness and care, handling redundancy correctly after a transfer not only ensures compliance but also demonstrates respect for employees and protects your organisation’s reputation.
Can You Change Terms and Conditions After a TUPE Transfer?
One of the most common questions from employers is whether it’s possible to change employees’ terms and conditions of employment after a TUPE transfer. The short answer is: only in very limited circumstances.
Under TUPE regulations, contractual terms cannot normally be changed if the reason for the change is directly connected to the transfer itself. This rule exists to protect employees from disadvantage or loss of rights when their employment moves to a new organisation.
However, changes may be permitted if:
- They are unrelated to the transfer, such as a broader organisational policy change that affects all staff.
- There is a genuine economic, technical, or organisational (ETO) reason for the change, and the employee agrees to it voluntarily.
For example, a change in working hours might be justified if the service delivery model is being restructured for operational reasons, but not if it is purely to align new employees’ contracts with the rest of the workforce.
Even when there is a valid ETO reason, any proposed change should be carefully managed. Consultation, transparency, and clear communication are essential to ensure employees understand why the change is being made and h
ow it affects them. Attempting to alter contracts without proper justification or consent could lead to claims of unfair dismissal or breach of contract.
For social sector employers, these situations can be particularly sensitive. Many staff have long-standing relationships with service users or communities, so it’s important to approach any contractual change with empathy as well as compliance. Taking the time to explain the reasons behind a change, listening to concerns, and exploring alternative solutions can go a long way towards maintaining trust and morale.
At Roots HR, we always recommend seeking advice before making contractual changes following a TUPE transfer. Getting expert guidance early helps protect your organisation, supports your people, and ensures any changes are fair, lawful, and in keeping with your organisation’s values.
TUPE Risks
Managing a TUPE transfer without the right preparation, communication, or understanding of the law can expose employers to significant legal, financial, and reputational risks. For social sector organisations, these risks can be particularly damaging – not only in terms of compliance but also in maintaining trust among employees, service users, and stakeholders.
Common TUPE risks include:
- Protective awards of up to 13 weeks’ pay per employee if an employer fails to inform and consult affected staff properly before a transfer.
- Inheriting liabilities from the outgoing employer, such as enhanced holiday entitlements, unpaid wages, or historic grievances and disciplinary matters.
- Taking on employees with enhanced terms or pension obligations, which may not have been budgeted for or aligned with your organisation’s existing arrangements.
- Low staff morale, reduced engagement, and potential loss of talent if communication is poor or the transfer is perceived as unfair.
Many of these risks can be prevented with early planning and open, transparent communication. Employers should begin discussions as soon as a potential transfer is identified, ensuring that both outgoing and incoming organisations understand their obligations and timelines. Clear communication with employees helps manage expectations, reduces anxiety, and promotes trust throughout the process.
For charities and social enterprises, where reputation and relationships are central to success, handling TUPE transfers with sensitivity and care is essential. Employees are often motivated by purpose as much as pay, and how an organisation treats its people during change sends a strong message about its values.
Practical TUPE Checklist
A well-managed TUPE process starts with preparation and clarity. Whether you are the outgoing employer (transferring a service out) or the incoming employer (taking one on), being proactive and organised helps to ensure compliance, reduce stress, and protect your organisation’s reputation.
Below is a practical TUPE checklist to guide you through the key steps:
- Confirm whether TUPE applies
Begin by assessing the situation carefully. TUPE applies to both business transfers and service provision changes, so even where only part of an activity moves to another organisation, the regulations may still apply. If you are unsure, seek professional advice early – it’s far easier to plan ahead than to resolve problems after the fact.
- Gather and share employee liability information
The outgoing employer must provide the incoming organisation with essential employee details, including names, start dates, salaries, benefits, and any ongoing HR matters such as disciplinary or grievance issues. This information helps the new employer prepare for a smooth transition and ensures transparency from the outset.
- Inform and consult with affected employees
Communication is the cornerstone of any successful TUPE transfer. Keep employees updated throughout the process, explaining what is happening, why the transfer is taking place, and how it affects them. Consultation should be meaningful – not just a formality – giving employees the chance to ask questions, raise concerns, and suggest alternatives where appropriate.
- Plan your communication and engagement strategy
Develop a clear communication plan for before, during, and after the transfer. In the social sector, employees are often deeply committed to their organisation’s mission, so taking the time to engage with empathy and transparency will help maintain morale and trust.
- Review contracts, policies, and benefits
After the transfer, review your HR documentation. Check for inherited terms such as enhanced annual leave, sick pay, or pension contributions, and seek advice before making any contractual changes to avoid breaching TUPE protections.
- Document every step
Keep thorough records of your decisions, consultations, and communications. This evidence is invaluable if questions arise later about how the process was managed and demonstrates that you acted fairly and lawfully.
- Seek specialist advice early
TUPE can be complex, especially when funding arrangements, grant conditions, or multiple stakeholders are involved. Getting expert HR support at the planning stage can prevent costly mistakes and give you confidence that your organisation is meeting its obligations.
For more detailed guidance, both outgoing and incoming employers can refer to the ACAS TUPE guidance for step-by-step advice and resources here: TUPE transfers | Acas
Taking the Next Step
Successfully managing a TUPE transfer requires a balance of legal compliance, clear communication, and genuine care for the people affected. For social sector employers, it’s about more than just following the rules – it’s about demonstrating fairness, protecting organisational values, and maintaining trust during times of change.
At Roots HR, we understand the challenges that charities, social enterprises, and not-for-profit organisations face when contracts, funding, or partnerships shift. Our work is dedicated to helping employers in the social sector manage TUPE processes smoothly, lawfully, and sensitively, ensuring that both people and purpose remain protected.
We can support you with:
- Assessing whether TUPE applies to your situation
- Managing TUPE consultation and communication with employees and representatives
- Advising on redundancy or restructuring following a transfer
- Reviewing contracts, terms, and policies to ensure post-transfer compliance
- Delivering training for managers and leaders on fair and confident people management through change
Contact us to discuss your support needs now.
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At Roots HR, we’re proud to support organisations that make a difference. By handling TUPE transfers with care, clarity, and compassion, we help you uphold the principles of fairness and respect that define the social sector – ensuring your people, your values, and your reputation continue to thrive.
