TUPE and redundancy pay: what happens to your service?
Understand redundancy after a TUPE transfer, how continuous service is protected, who pays redundancy and when enhanced redundancy terms may transfer.
TUPE does not reset your service clock
When an employee transfers under TUPE, their continuous employment is normally protected. If the new employer later makes them redundant, statutory redundancy pay can therefore be based on service with both the old and new employer.
If redundancies are made before a TUPE transfer and are not related to the transfer, the old employer can be responsible for redundancy pay.
If the new employer makes redundancies after the transfer, the new employer is normally responsible for redundancy pay.
TUPE protects continuity of employment, so service with the old employer normally carries across for the redundancy calculation.
Transferred contractual terms, policies or collective agreements may include enhanced redundancy rights beyond the statutory minimum.
Can redundancies happen around a TUPE transfer?
Yes, but employees retain rights to a fair redundancy process. Acas notes that consultation can start before a transfer and continue afterwards, but employees should not be selected for redundancy before the transfer takes place merely as part of that process.
If you know your total continuous service, you can enter that figure into the NetSlip redundancy calculator to estimate the statutory minimum. Check transferred terms separately for any enhanced entitlement.
Why the reason for redundancy matters
TUPE has specific protections around transfer-related dismissals and contractual changes. A redundancy situation should be assessed on its facts, so employees and employers dealing with a live TUPE process should use Acas guidance or obtain appropriate advice.
TUPE and redundancy principles checked against current Acas guidance.
Common questions
No. Continuous employment is normally protected when an employee transfers under TUPE.
If the new employer makes redundancies after the transfer, the new employer is normally responsible for redundancy pay.
They can. Contracts, company policies and collective agreements should be checked for enhanced redundancy rights.